Using examples from the lessons, defend or reject the following statement in two to three complete paragraphs: "medieval guilds and banking systems to usher in a modern market economy."

"Modern banking has its auspicious beginnings in the early to mid Middle Ages. Primitive banking transactions existed before, but until the economic revival of the thirteenth century they were limited in scope and occurrence. By the dawn of the twelfth and thirteenth centuries, bankers were grouped into three distinct categories: the pawnbrokers, the moneychangers, and the merchant bankers. But with these economic specializations came religious denunciation and backlash. However, these bankers persevered and a new industry was born."

"Some citizens found it convenient to deposit some of their money in a bank account and receive a moderate interest (often camouflaged as an optional bonus) while using the account for receiving and making payments by written transfer in the banker's book. A reliable depositor was often allowed to overdraw his account within certain limits. The banker, in turn, was entitled to invest in his own trade the deposits of his clients. A merchant created feedback credit by charging a banker (or, another merchant) with supplying foreign exchange in a foreign place, while agreeing overtly or covertly that he would waive repayment abroad in order to receive postponed payment in the currency and place of origin."

"While the organization of the moneychangers business seems family oriented, individual changers occasionally pooled their resources in partnerships. Such enterprises were small, characteristically involving two or perhaps three changers. The term of individual partnership arrangements was usually short, three months to a year. But once two changers came together they tended to remain as such for a considerable time by successively drawing up new partnership arrangements."

1. the spread of reform movements aimed at perfecting american society