3 fun facts about money and banks you need to understand about

Banking systems are a significant element of the world’s economy. Carry on reading through to find out precisely why.

Money and banks go hand in hand. You will find that money facts and trivia is much more exciting than you would anticipate. But first, let us understand what money actually is. Money in itself is not everything, it is essentially a standardized unit to measure the value of any given good or service. Money does not have an inherent value, and is only valuable if everybody else consents to its value. Money has been around for at least three thousand years. This was a time before any orderly written records began which makes it hard for us to evaluate the history of growth of monetary systems. These days, this job is done mostly by banks such as La Caixa and BEA. Before the advent of money, the barter systems was predominant in evaluating the value of services and goods. If you were a farmer that required their roof thatched, a thatcher may require certain amount of grain or vegetables. This is very similar to how money functions, except in a barter system there was no set value for everything and you would typically determine how much and what would be exchanged. By using a standardised unit, like pound sterling or American dollars, we have the advantage of speed in any kind of financial transaction, which is possibly probably one of the most important facts about currency.

When thinking of banks, Switzerland is likely the country most related to this means of service. This small country in the Alps is today home to some of the world’s leading banks like UBS and Credit Suisse. The history of this country is full of fun banking facts. For example, did you be aware of that the national bank of Switzerland is not literally owned by the government? Central banks are typically owned by the government they are located in, but in the case of Switzerland they are owned by the different Swiss cantons, cantonal banks, and private individuals and companies.

Banks have existed, in one way or another, for practically as long as money itself. The original banks in all probability appeared because governments needed a location to store the tax they raised in the shape of coins – a little world currency trivia. Temples in Ancient Greece, Rome, Babylon and Egypt were the very first locations to keep the money of governments and individuals. Temples made for protected places, since they were filled by men and women like priests and temple workers who were there twenty-four hours a day, and were typically thought of as sincere. Slowly, these temples started offering some other monetary offerings such as giving out loans, which led to the advancement of dedicated financial establishments, known in modern times as banks. Nowadays we can come across examples of numerous banks, like the European Central Bank or the Bank of England, offering a number of financial solutions both to individuals and governments.

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