Overview of New Economic Systems

Which of the following was a major change in transregional trade patterns from 1500 to 1700 ?

• Japanese fleets gained control over most Pacific Ocean trade routes.

• European manufactured goods came to dominate trans-Saharan trade.

• Europeans created joint stock companies to engage in overseas trade.

• Silk Road trade routes came under the control of Mongol rulers.

Archaeologists have found Mesopotamian tablets that have financial contracts carved into them describing how much barley must be paid back. What financial innovation does this demonstrate?

• Mercantilism

• Capitalism

• Banks and bills of exchange

• Credit and interest

Fibonacci travelled and gathered mathematical knowledge, like fractions, decimals and a zero-based numeral system that revolutionized European economic systems. Where did this knowledge originate?

• China and Southeast Asia

• Mesopotamia

• Rome

• India and the Middle East

What new way of dealing with money did European banks develop – based on technology from Asia – that helped merchants move money over long distances?

• Bills of exchange

• Checks

• Interest

• Credit

What role did joint-stock companies play in colonization during the Age of Exploration and after?

• They played the part of ambassadors for European governments, arranging diplomacy and trade agreements.

• They paid for the journeys to find new trade routes and then let governments take over once they were found.

• They turned the raw materials extracted from overseas colonies into highly profitable finished goods.

• They funded colonizing projects and performed colonial administration on the behalf of European governments.