Slide 6A
Crusaders, Unpleasant
Peasants & Mobsters
Lesson 6
Slide 6B
What Does That Mean?
Term
Definition
Crusades
a series of military campaigns made in the Middle
Ages to restore Christian access to the Holy Land.
labor economy
an economic system in which physical labor is
accepted as payment for goods and services.
money economy
an economic system using money as the generally
accepted payment for goods and services
Peasant Revolt of 1381
a major uprising in England resulting in the collapse
of the manorial system and prompting the transition
from a labor to money economy.
Slide 6C
What Does That Mean?
Term
Definition
bill of exchange
key financial instruments in international trade; a written
order binding one party to pay a fixed sum of money to
another party at a future date.
bank
bank a for-profit business that enables people to
accumulate wealth by making deposits of money into
their accounts.
Medici Family
a powerful and wealthy banking family of 14th - 15th
century Florence.
Slide 6D
What Does That Mean?
Term
Definition
Fibonacci
Italian mathematician who introduced Europe to HinduArabic numerals in 1202.
commercial bank
a financial institution that accepts deposits of money and
provides business, car and home loans, and investment
products; also called a retail bank. a currency that is
going up in value.
investment bank
investment bank a financial institution that specializes in
providing advice on and acting as an intermediary in
large and complex financial transactions for institutional
clients.
Slide 6E
What Does That Mean?
Term
Definition
M&A
mergers and acquisitions; bringing separate companies
together to form larger ones.
liquidity
the ability to quickly convert an asset to cash.
Rothschild Family
family of German-Jewish origin who formed a powerful
international banking enterprise in 18th and 19th century
Europe.
Slide 6F
Lesson 6 Objectives
 Tell how the Crusades and The Peasants
Revolt of 1381 contributed to the growth of
commerce.
 Relate the origins of banking.
 Explain how two famous banking families
contributed to the expansion of commerce.
 Create a plan to accumulate non-material
wealth.
 Summarize income and wealth inequality in
the U.S.
Slide 6G
In the last lesson you were asked to ponder and
predict which function of money had the
greatest impact on commerce.
1.
Is it that it is a medium of exchange which
everyone agrees on which made life easier?
2.
Is it that money provides a standard unit of
measurement, which makes buying and
selling stuff more efficient?
3.
Is it the fact that money enables the
accumulation of wealth?
Slide 6H
Commerce and The
Crusaders (1095-1192)
 Major international operation
 Required transfer of funds
 Revived banking
 Established new trading relations
 Transferred intellectual property
 Scrapped Roman numerals which facilitated
investment, bookkeeping, banking, and business
Slide 6I
Commerce and The
Unpleasant Peasants (1381)
 Peasants Revolt of 1381
 England goes from labor economy to money economy
 Money has effect of redistributing power (over time)
 Money mobilizes wealth because it is a liquid commodity
(over time)
 Money is put to work for exploration, innovation, art, and
expansion of commerce- to make more money
Slide 6J
Commerce and the Mobsters
 Medici banking dynasty of Florence (Italy) 1397 -
1494
 Vast and wealthy international operation
 Extremely well run- attracted deposits
 Made many advances in banking- modernized
banking
 Contributes to setting Europe up for international
commercial domination which will last for
centuries
Slide 6K
The Big Picture
Pre-money, it was difficult to accumulate wealth in any form
other than land. Land was passed down through generations
within the same family so wealth was concentrated in the hands
of the very few. The move from a labor economy to a money
economy spread the wealth, and with it some of the economic,
social, and political power. The Crusades were a catalyst for
reviving European trade and banking. Banks, particularly the
banks of the Medicis and Rothschilds, facilitated the
mobilization of wealth, and funded the expansion of commerce.
Wealth was put to work for exploration, innovation, art, and
science. Financial literacy includes knowing about the impact of
money on wealth and the role of banking in the expansion of
global commerce.
Slide 6L
Ponder and Predict
 It may be a bit misleading to say that the
world went for wealth in a big way. The fact
is, western civilization went for wealth in a
big way. As a result, the west developed and
industrialized faster and more successfully
than most other places in the world where
in many places it still lags today. Why did
commerce take root in Europe, and
economic development flourish in the
West?