Question

Which among the following are considered, ancestors to bankers, according to "Crowther"?

• A. Merchant bankers
• B. Money Lenders
• C. Gold smith
• D. All of these

Answer 1

Answer:

D. All of these

Modern Banking is a recent origin. According to "Crowther", banker has three ancestors:

1. Merchant bankers:

• Merchant bankers were originally traders in commodities.

2. Money Lenders:

• Money lenders usually conduct business with their own money.
• They used to lend their surplus funds to the needy, at a high rate of interest and earned a large income.

3. Goldsmiths:

• They had facilities (ie, strong iron safe) for the safe keeping of valuables and money. So, people deposited their spare money with the goldsmiths for safe custody.
• For the money accepted for safe custody the goldsmiths issued 'deposit receipts' to acknowledge debts. The people received their deposit back when they presented the deposit receipts.
• These gold smith also called "Seths"