QUESTION 1

The Medici family came up with an innovative form of money which had a significant impact on the development of banking at the time. This innovation was called:

a. a bill of exchange

b. a credit note

C. a term deposit

d. a credit default swap

QUESTION 2

The Medici banks were considered which of the following:

a. an arm of the Catholic church

b. a private business

c. a government agency permitted to create money through lending.

d.a not for profit cooperative organization

QUESTION 3

The new type of money created by the Medicis created a significant economic impact primarily by impacting which of the following:

a. the expansion of services through the invention and exchange of coinage.

b. reducing the need for barter exchanges

c. opening up new markets for international trade and barter

d. the money supply.

QUESTION 4

The names of the famous coins minted in Venice and Florence, respectively were known as the:

a. Venusa and Florin

b. Ducat and Florin

c. Venita and Firenta

d. Ducat and Firenta

QUESTION 5

The second major monetary innovation coming out of the era of the Medici and other Florentine banks was which of the following:

a. the credit note.

b. the bill of exchange

c. the bank cheque

d. the high interest savings account

QUESTION 6

The Medici banking family did not use which of the following methods to gain power and influence during Renaissance Italy:

a. bribery of church officials

b. financing great works of art and cuture

c. hiring of mercenary soldiers to take local power

d. bribery of government officials

QUESTION 7

The money system of bills of exchange was most significantly based on which of the following:

a. the government enforcement of banking regulations

b. the existence of a bank branch network

c. the value of gold and silver coinage

d. trust between lenders and borrowers

QUESTION 8

Which government power in the day of the Medicis had the most significant impact on the banking system:

a. the ability to cancel debt.

b. the ability to regulate banking activities.

c. the authority to tax bank profits

d. the authority to tax investor's deposits

QUESTION 9

Which of the following is not considered to be one of the "5 C's of credit"?

a. capacity.

b. character

c. currency

d. capital

QUESTION 10

Which of the following best defines the word "collateral"?

a. a loan made by a lender to a debtor

b. assets pledged by a borrower to secure a loan or other credit

c. a contractual agreement between a lender and a borrower

d. capital owned by a lender which generates income