Florence

Definition

Florence is a city in Italy that has historically been an important center for trade and finance. It was instrumental in the development of modern banking and financial practices during the Renaissance period.

5 Must Know Facts For Your Next Test

1. Florence was home to the Medici family, who were influential bankers and patrons of the arts.
2. The Florentine florin became one of the most widely used currencies in Europe during the Middle Ages.
3. Florence's banking system laid the groundwork for modern double-entry bookkeeping.
4. During its peak, Florentine banks financed many European monarchies and merchant ventures.
5. Florence's economic practices influenced risk management and exchange rate mechanisms in contemporary finance.

Review Questions

• Which influential banking family was based in Florence?
• What currency issued by Florence had significant impact on European trade?
• How did Florence contribute to modern accounting practices?

Related terms

Medici Family: Influential banking family from Florence known for their role in developing early financial systems

Florin: A gold coin minted by the Republic of Florence, widely used across Europe for trade

Double-Entry Bookkeeping:

An accounting system where each entry to an account requires a corresponding and opposite entry to a different account