Ch 5

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 bill of exchange

2. The Medici banks were considered which of the following:

A private business

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

The money supply.

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

Ducat and Florin

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

The bank cheque

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

Hiring of mercenary soldiers to take local power

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

Trust between lenders and borrowers

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

The ability to cancel debt.

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

Currency

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

Assets pledged by a borrower to secure a loan or other credit