Fintech quiz

Which civilization was first to invent coins?

• China

• Indus River

• Lydia

• Phoenicia

Answer explanation

The correct answer is a. China. Although Lydia created coins in the 630s BCE, coinage in China goes back further. Coinage is the original fintech.

Where was the first use of writing to track financial transactions?

• China

• Iraq

• Mongolia

• Peru

Answer explanation

The correct answer is b. Iraq. By the 4th millennium BCE, the Sumerians of lower Mesopotamia (Iraq) were using the cuneiform system of writing on clay tablets to record payments, transactions, and even futures contracts. Ancient societies invented financial transactions that have echoes in today’s electronic markets.

Who was Juno Moneta?

• Wife of Octavian, first woman to appear on a coin

• Goddess of the temple that minted Roman coins

• Cleopatra’s rival, executed for counterfeiting

• Carthage goddess who protected seaborne trade

Answer explanation

The correct answer is b. Goddess of the temple that minted Roman coins. The word “money” is derived from her name. The Romans gave us the first fiat currency, meaning a currency not backed by a commodity such as gold.

What joint-stock company was the first to issue shares to the general public?

• East India Company of England

• The Mississippi Company

• The Muscovy Company

• The United East India Company (VOC or Vereenigde Oost-Indische Compagnie, in Dutch)

Answer explanation

From 1602, VOC shares were open to the Dutch middle class. This, combined with other innovations, such as a prototype central bank and a stock exchange, made the Netherlands the first capitalist power.

Who helped establish the British gold-backed pound?

• Nicholas Barbon

• John Law

• Sir Isaac Newton

• William Paterson

Answer explanation

The correct answer is c. Sir Isaac Newton. Sir Isaac Newton understood Britain’s messy bimetallic system of gold and silver coins was harming the currency and minted a new pound based on gold, which eventually formed the basis of the world gold standard.

Where did the first organised futures market appear?

• Babylon

• Chicago

• Osaka

• Paris

Answer explanation

The 17th-century Dojima Rice Exchange in Osaka created a formal marketplace for hedging and speculation, and these contracts became their own form of currency.

Created in 2007, what was the first money-transfer service based on mobile phones?

• PayPal

• M-Pesa

• Alibaba

• Mastercard

Answer explanation

The correct answer is b. M-Pesa. Kenyan telecommunications operator Safaricom launched M-Pesa. M stands for mobile, and Pesa is Swahili for “money”. Previous innovations such as PayPal, and even Alibaba, required users to log in with an existing bank account or credit card. But M-Pesa users didn’t need one: They could top up their M-Pesa with cash at mom-and-pop outlets. Money became an SMS message.