WORLD HISTORY

Detailed explanation-1: -The Medici Bank, from when it was created in 1397 to its fall in 1494, was one of the most prosperous and respected institutions in Europe, and the Medici family was considered the wealthiest in Europe for a time.

Detailed explanation-2: -For example, the Medici fortune was made by using foreign exchange trade and arbitrage. The way it worked is that the Medici’s would collect money, or tax if you prefer to think of it that way, being paid to the Holy Roman Empire under the new Catholic regime of Rome.

Detailed explanation-3: -The Medici family, also known as the House of Medici, first attained wealth and political power in Florence, Italy, in the 13th century through its success in commerce and banking.

Detailed explanation-4: -The wool and cloth industries were the export mainspring of the Florentine economy in the 14th and 15th centuries. In 1402, the Medici Bank loaned 3, 000 florins (nearly one-third of its original capital) to finance a Medici family partnership to produce woolen cloth.

Detailed explanation-5: -The Medici Bank (Italian: Banco dei Medici [ˈbaŋko dei ˈmɛːditʃi]) was a financial institution created by the Medici family in Italy during the 15th century (1397–1494). It was the largest and most respected bank in Europe during its prime.