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Presentation of Content There are loads of famous and not-so-famous people and events that contributed to the expansion and evolution of commerce throughout history. There’s not enough time in this course to discuss them all. In this lesson we’ll look at a few who, in some key way, were catalysts for moving commerce forward. Commerce and The Crusaders (1095-1192) No, that’s not a 60’s rock band. Believe it or not, the Crusades, that violent and bloody medieval quest for control of the Holy Land, are credited with the revival of commerce and breathing life into an institution essential to trade: banking! Engage students in a discussion: Before we start, let’s set the stage for this lesson. Does anyone know where the word “bank” comes from? Banks have been around along as long as money’s been around. They began as simple tables and benches, usually located outside temples. People gathered there to meet with money changers who, for a fee, would exchange one currency or denomination for another. The word “bank” actually comes from the Italian word banca for “bench” or “counter.” Even in ancient Greece and Rome, banks were fairly sophisticated businesses, integrated into everyday life. Banks held deposits of money and made loans for shipping, ship building, trade, construction of public buildings, and other improvements, much like they do now. Then came the Fall of the Roman Empire which ushered in the Dark Ages. Doom and gloom enveloped Europe. The population declined and cities were abandoned. Commerce tanked, and with it the need for banks. Some societies even forgot how to read! For several centuries people were more concerned with survival than pursuing wealth through trade and commerce. Around the time of the first Crusade in 1095, Europe started to emerge from its Dark Ages-induced stupor and embrace commerce with renewed vigor. Much of the this was, in fact, due to the Crusades. You see, the Crusades were a massive and very expensive international operation . Hundreds of thousands of men had to be moved, fed, equipped with supplies, and transferred long distances. This required the exchange of money for payment of merchants along the Crusade route, and the transfer of funds over great distances . How was done? Banks! There was a rebirth of banking – particularly in the Italian city-states of Genoa, Rome, Florence, and Venice which were located along the routes Crusaders took to the Holy Land. At banks, Crusaders could obtain bills of exchange or exchange currency which would enable them to pay for goods and services in distant places. The Crusades are also credited with expanding commerce by establishing new trade relations . Wherever the Crusaders were victorious, they’d colonize the area, set up shop among the local Muslim population, and begin trading between there and Europe. People who lived great distances apart who’d barely known of the other's existence began exchanging materials, like cotton, wool, tools, technology, and ideas . That was a huge boon for commerce and innovation for Europe. As brutal and violent as the Crusades were, they actually deserve credit for reviving commerce and banking, and for contributing to the expansion of trade and transfer of knowledge throughout Europe, the Mediterranean, and parts of the Middle East. SLIDE 6H PRODUCT PREVIEW
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THE 21st CENTURY STUDENT’S GUIDE TO FINANCIAL LITERACY
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