1D.7.4.4 Growth of Financial Institutions

• What are financial institutions?

  Entities facilitating flow of capital
• Banks lend money, provide deposit accounts, and manage payments
• What is an example of an insurer in England during the Stuart period?

  Lloyd's of London
• The London Stock Exchange facilitated the trading of company shares.
• When was the Bank of England founded?

  1694
• The Bank of England revolutionized the monetary system by providing stability and financing government debt
• What was a major driver of financial institution growth in England during the Stuart period?

  Economic expansion
• Wars like the Nine Years' War led the government to borrow heavily, prompting the establishment of the Bank of England
• Private banks in England introduced deposit accounts and loans during the Stuart period.
• What role did the Bank of England play in Stuart Britain?

  Key development in 1694
• The Bank of England managed debt by issuing $£1.2 million$ in shares
• Which institution was established in 1694 to manage government borrowing?

  Bank of England
• Private banks introduced deposit accounts and loans
• The Bank of England issued $£1.2 million$ in shares to manage government debt.
• Order the factors that led to the growth of financial institutions in England.

  1️⃣ Economic expansion

  2️⃣ Government debt

  3️⃣ Banking innovations
• Match the financial institution with its primary function:

  Bank of England ↔️ Manages government debt

  London Stock Exchange ↔️ Facilitates trading of shares
• The Bank of England funded military campaigns during the reign of William III and Mary II.
• What are financial institutions designed to facilitate?

  Capital flow
• Banks lend money, manage payments, and provide deposit accounts
• The Bank of England revolutionized the monetary system by providing stability and financing government debt.
• What is the primary function of insurers in financial institutions?

  Risk compensation
• Match the financial institution type with its function:

  Banks ↔️ Manage deposits and loans

  Insurers ↔️ Cover risks for compensation

  Stock Exchanges ↔️ Facilitate share trading
• The Bank of England began with $£1.2 million$ in shares to finance military campaigns.
• The Bank of England and the London Stock Exchange emerged during the reign of William III and Mary II
• How did the Bank of England promote financial stability during the reign of William III and Mary II?

  Managed government debt
• Match the financial policy with its impact:

  Bank of England ↔️ Regulated banking

  Insurance Growth ↔️ Mitigated business risks

  Stock Exchange Expansion ↔️ Facilitated capital investment