Cash In With This History of Banking Quiz

Introduced in 1967, the ATM (automated teller machine) completely changed the way that people could access their money. The first ATM went into operation at a North London branch of Barclays bank. Today, there are believed to be about 3 million ATMs globally, including one at the McMurdo station at the South Pole.

Created by the Glass-Steagall Act of 1933, the Federal Deposit Insurance Corporation (FDIC) helped inspire Americans to trust banks with their money again after years of closures and losses during the Great Depression. The FDIC originally insured deposits up to $5,000, but that number was increased to $100,000 in 1980 and then $250,000 in 2010.

The first national crisis of the 20th century, known as the Panic of 1907, was caused by a liquidity crunch among New York City banks. Sparked when two major brokerage firms went bankrupt, the resulting run on banks caused a huge contraction in the stock market and a 17% reduction in industrial output. It was the worst financial crisis in American history until the Great Depression struck a few decades later.

The earliest version of a U.S. national bank was known as the Bank of North America, created by the Continental Congress in 1781 and located in Philadelphia, Pennsylvania. Although common today, at the time government banking was a controversial topic. Alexander Hamilton famously supported the bank, while Thomas Jefferson and James Madison opposed it, believing it consolidated too much power in one institution.

The Royal Charter of 1694 by King William and Queen Mary listed the Bank of England’s purpose as “Promoting the good of the people of the United Kingdom by maintaining monetary and financial stability.” It was also important for building up the country’s military after a naval defeat by France in 1690 during the Nine Years’ War. The bank served as a model for financial systems in many other countries.

Wealthy Romans kept money and valuables in the basements of temples, which were often patrolled by soldiers and clergy workers. Priests were responsible for recording deposits and withdrawals, and while these early banks didn’t offer customer incentives as they do today, they did offer loans with interest to eligible patrons. Some temples also assisted with currency minting and verification.

After forgetting his wallet at a professional lunch in 1949, New York businessman Frank McNamara came up with the idea of a charge card that could be used anywhere. Legend holds that McNamara returned to the same restaurant in 1950 and paid using a cardboard card he dubbed the “Diner’s Club” — the first widespread credit card. Plastic didn’t become a popular material for charge cards until the 1970s.

President Andrew Jackson long distrusted the influence of the wealthy in the government — after taking office in 1829, he declared intentions to dismantle the national bank. Years of conflict between Jackson and pro-bank supporters in Congress ensued. After reelection, Jackson withdrew all federal funds from the bank, and stopped it from accepting deposits in October of 1833. Congress censured him the following spring.

Issued in 1775 by the Continental Congress, the first paper currency in America predates the country itself. These bills, known as “continentals,” were so often counterfeited that by the time the Revolutionary War ended they were nearly worthless. Fake continentals were so widespread that the Constitution only gave the government power to mint coins, since public trust in paper money had largely eroded.

Founding father Alexander Hamilton rose to prominence as an aide for George Washington during the American Revolution, and went on to serve as President Washington’s treasury secretary. Hamilton’s belief in a strong central government and treasury shaped the nation’s early government — as head of the Treasury, he oversaw the launch of the First Bank of the United States in 1791.