PPT 1.4 - New Pre-Modern Economic Institutions & Entities

Open Ended

Prompt

Imagine you are a merchant planning a long and dangerous trading voyage.
Why would you be reluctant to invest all of your own money in the trip? How could sharing risk with other investors encourage trade and economic growth?

Multiple Choice

Which of the following best explains the significance of new pre-modern economic institutions and entities in shaping economic growth?

• They provided safer ways to invest and share risk, encouraging more trade and innovation.

• They limited economic opportunities by restricting trade to only a few people.

• They caused economic decline by discouraging investment in new ventures.

• They focused only on agriculture and ignored trade.

Multiple Choice

Which financial innovation allowed investors to pool their money together and spread risk for large ventures in the 16th and 17th centuries?

• Joint-stock companies

• Personal savings accounts

• Government bonds

• Private partnerships

Open Ended

How did the creation of corporations, such as the British East India Company, revolutionize investment and liability for investors?

Multiple Select

Select all the ways in which stable banking systems, like the Bank of England, contributed to economic growth.

• Creating a stable currency

• Offering investment opportunities

• Providing safe storage for money

• Discouraging loans for businesses

Open Ended

What is one new concept you learned about pre-modern economic institutions and entities, and how do you believe these institutions influenced economic growth?