01:220:301 Lecture Notes - Lecture 9: Federal Deposit Insurance Corporation, United States Treasury Security, Sovereign Default
29 Feb 2016
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Document Summary
With the exception of the extremely wealthy, very few people buy their homes in all-cash transactions. Most of us need a mortgage, or some form of credit, to make such a large purchase. In fact, many people use credit in the form of credit cards to pay for everyday items. The world as we know it wouldn"t run smoothly without credit and banks to issue it. In this article we"ll, explore the birth of these two now- flourishing industries. Banks have been around since the first currencies were minted, perhaps even before that, in some form or another. Currency, particularly the use of coins, grew out of taxation. In the early days of ancient empires, a tax of on healthy pig per year might be reasonable, but as empires expanded, this type of payment became less desirable. Additionally, empires began to need a way to pay for foreign goods and services, with something that could be exchanged more easily.
