Below you will discover a few cool basic facts about banks and precisely why they are so important in our current world.
When thinking of banks, Switzerland is perhaps the country most connected with this form of service. This small country in the Alps is present day property to a number of the world’s top banks like UBS and Credit Suisse. The history of this country is full of fun banking facts. As an example, did you learn that the national bank of Switzerland is not really 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 providers.
Money and banks go hand-in-hand. You will find that money facts and trivia is much more important than you would expect. But first, let’s comprehend what money actually is. Money in itself is not everything, it is essentially a standardised unit to measure the value of any service or given good. Money does not have an intrinsic value, and is just valuable if everyone else agrees to its value. Money has been around for a minimum of 3000 years. This was a time before any systematic written records began which makes it hard for us to measure the history of advancement of monetary systems. Present day, this job is done principally by banks such as La Caixa and BEA. Before the development 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 demand specific quantity of grain or vegetables. This is very similar to how money functions, except for in a barter system there was no established value for anything and you would usually figure out how much and what would be exchanged. By using a standard unit, like pound sterling or American dollars, we have the advantage of speed in any form of financial transaction, which is possibly perhaps one of the most indispensable facts about currency.
Banks have been around, in one shape or another, for almost as long as money itself. The original banks in all likelihood appeared because governments wanted a location to store the tax they levied in the shape of coins – a small world currency trivia. Temples in Ancient Egypt, Greece, Babylon and Rome were the very 1st places to keep the money of individuals and governments. Temples made for reliable places, since they were filled by men and women like priests and temple workers who were there 24 hours a day, and were typically thought of as honest. Steadily, these temples started offering some other monetary solutions such as giving out loans, which led to the advancement of specialised financial institutions, known in modern times as banks. Currently we can discover cases of numerous banks, like the European Central Bank or the Bank of England, offering a variety of financial services both to individuals and governments.