Give an example of a “form of credit” such as banking houses 1200-1450.

One example of a form of credit during the period 1200-1450 was the system of "Bills of Exchange" used by Italian banking houses, such as the Medici Bank.

Step 1: Understanding the concept of "Bills of Exchange" A bill of exchange was a written order used primarily in international trade that binds one party to pay a fixed amount of money to another party at a predetermined future date. The party that was to pay the amount was usually a debtor or borrower, while the party that was to receive the payment was typically a lender or creditor.

Step 2: The role of banking houses Banking houses, like the Medici Bank, would issue these bills of exchange. They acted as the intermediary between the debtor and the creditor. The debtor would owe the banking house, and the banking house would owe the creditor. This allowed for safer and more efficient transactions, especially for merchants who were conducting trade over long distances.

Step 3: The benefit of this form of credit This system of credit was beneficial as it allowed for the expansion of trade and commerce during the period. It also reduced the risk of carrying large amounts of cash over long distances, as the bill of exchange could be cashed in at the destination.

So, the "Bills of Exchange" system used by banking houses like the Medici Bank is a good example of a form of credit that existed between 1200-1450.