Banking and Insurance in 17th Century London

The Royal exchange was based on the ________ bourse.

• Antwerp

• London

• New York

• Tokyo

When was the first money-scrivener firm established?

• 1636

• 1650

• 1672

• 1659

In what year was the first English cheque written?

• 1636

• 1650

• 1672

• 1659

After the Royal Mint was seized by Charles I in 1640, wealthy merchants began:

• hoarding gold and silver privately.

• investing in foreign currencies.

• trading exclusively with the crown.

What was the reason for the Stop of the Exchequer in 1672?

• Funds needed for war

• Refinancing of debt

• Need for new trade routes

How did Charles II's actions in 1672 affect relations between the Crown and goldsmith-bankers?

• They strengthened the relationship by providing more financial support to goldsmith-bankers.

• They weakened the relationship by defaulting on loans from goldsmith-bankers.

• They had no significant impact on the relationship.

Explain how confidence in the banking system was restored in 1688.

• By paying back the loans from the goldsmith bankers

• By increasing interest rates

• By reducing taxes

• By introducing new currency

British merchants were oftentimes reluctant to take out insurance in 17th century because:

• they trusted their ships' safety.

• they were unaware of insurance.

• they preferred to bear the risk themselves.

By 1657, which country's ships were often insured through English brokers?

• France

• Spain

• Dutch Republic

• Portugal

Who opened a coffee house in London in 1688, which eventually became the world's first insurance market?

• Edward Lloyd

• John Smith

• William Penn

• Thomas Brown