Q1.Explain the Origin
of the word “Bank”.
The word bank was taken into Middle English from Middle French banque, from Old Italian banca, meaning "table", from Old High German banc, bank "bench, counter". The word bank comes from an Italian word banco, meaning a bench, since Italian merchants in the Renaissance made deals to borrow and lend money beside a bench. They placed the money on that bench.
Q2.Money, Lenders Merchants and Goldsmiths are the ancestors of Modern Banking Explain .
THE GOLDSMITHS:
In ancient time
some persons having the qualities of solvency, Honesty ,Safety. Therefore
people were trusted on them to keep money as deposits. The depositors would be
given slips as the proof of their deposits; these slips were accepted by the
people instead of money in transacting business due to high reputation of
goldsmiths. These slips were the origin of the modern bank notes.
MERCHANTS: A group of
merchants migrated to England from Italy in the 14" century. These wealthy
and well repute merchants began to lending the money for business purpose and
charging interest. These. Merchants also financed foreign trade by issuing
slips, through their agents. These slips were the origin’ of /modern, bills of
exchange, draft and letter of credit.
MONEY LENDERS: By the passage
of time Merchants Become Money landers They advances loans and take interest They
are used to taking deposits at a lower rate of
interest and, advancing loan at a higher rate. The gap of these rates
was the profit of them. The similar practice of taking deposits at a lower rate
of interest and advancing loan at a higher rate is the usual function of modern
banking.
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