Major Economic Innovations Flashcards
What are some examples of innovations and practices that allowed for better and more efficient trade between states and regions?
minted coins, bank houses, printed money, checks bills of exchange, debit and credit
What were minted coins?
gold and silver coins authorized and created by the state
What were bank houses?
banks that would hold gold, silver, and other assets,
What city was largely responsible for the formation and use of bank houses?
Venice/ Italian City-States
What was printed money in the post-classical era?
paper notes that represented a portion of gold or silver held by the bank
What did using printed money do in the post-classical era?
made trade and commerce far more efficient than bartering or carrying around large amounts of gold, silver, etc.
What did checks do in the post-classical era?
allowed people to issue written payments which are withdrawn by the recipient, making trade safer and more efficient
Where did people first begin to use checks?
the Muslim world
What were bills of exchange in the post-classical era?
promises to pay by a specific time
Where were bills of exchange used in the post-classical era?
the Mediterranean region and China
What did the use of debit and credit do in the post-classical era?
it allowed merchants and suppliers to keep running tabs on credit (available money)
and debit (debt owed) to speed up transactions with trusted partners
What was credit in the post-classical era?
someone’s available money
What was Debit in the post-classical era?
the debt someone owed
