Long ago, people used to keep their coins in clay pots at home. But sometimes they got stolen or broken. Then some clever traders said, Why not leave your money with me? I’ll keep it safe for you! That was the beginning of banks, like a super secure storage place for money. It was like having a friend who promises to hold your toys while you go play somewhere else.
Examples
- A baker leaves his coins with a trader while he goes on a trip.
- A farmer stores his gold in a jar at the town’s storage place.
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See also
- Why Do We Have Different Kinds of Taxes?
- Why Do Prices Change So Much?
- Why Do We Use Money Instead of Bartering?
- Why Do Prices Go Up So Much When There's a Shortage?
- Why Do We Have Different Kinds of Coins?
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Categories: Economics · banks,history of finance,economic evolution