7 Finance Facts You Never Knew

If you think that the world of finance is rather dry and boring, think again! 

Here are a few incredible facts provided by organisations such as www.wongaforbusiness.com and others:

1.    the word loan goes back to Middle English and the 13th century. However loans as a tool for business finance go back thousands of years;

 

2.    the world’s total debt, as measured by issued bonds, amounts to the staggering figure of 82 trillion U.S. dollars. That’s 82 followed by 12 zeros (US system) or 18 zeros if you’re using the old British definitions.  Whether it’s 12 or 18 zeros, it’s a lot of money;

 

3.    according to some financial experts, the total business world debt exceeds the total assets available across the entire planet.  In theory, that may sound worrying but in reality it’s not meaningful to start discussing whether or not the world owes itself money – any more than it would be to say you owe yourself money;

 

4.    from ancient texts, it is clear that a form of banking existed in ancient Mesopotamia.  If that doesn’t mean much to you, it takes us back around 4000-5000 years in history. Banks evolved from the need for individuals to store surplus agricultural produce in central repositories where it would be safe until it was needed;

 

5.    coinage arose much later than banking. At one time many coins were made of precious metal and when in use, people would illegally snip tiny pieces off the edges in order to eventually have enough to melt down and use as an ingot or similar. Although ferociously punished, including by death, the practice of clipping as it was called, continued until such time as milled edges were introduced. Of course today, other than the special editions, coins tend to be made of base metal;

 

6.    a recent money transfer error temporarily led to an individual becoming the richest person in the world today or who has ever lived. It resulted in the man concerned having 92 quadrillion US dollars accidentally deposited into his account – a sum greater than all the money on the planet! Sadly for him, the error was very quickly noticed and corrected;

 

7.    credit scoring is not a recent invention.  Centuries if not millennia ago, potential lenders were inclined to ask for references from other people relating to the good character and financial viability of the borrower concerned! 

Comments

  1. says

    Wow, that is a LOT of debt for the world. It’s a scary number! I can’t believe there was actually an error putting that much money into somebody’s bank account. That’s just insane. Too bad he had to give it back!

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