Question

Which statement best describes how the fall of the Western Roman Empire led to the development of capitalism?

A. It allowed for the Roman double-entry banking to be later introduced to Florence, which helped capitalism to grow in Europe.

B. It allowed for banks to decide to manage their money more wisely after witnessing the overspending of the Western Roman Empire.

C. It allowed for advances in banking that made trade much easier, increasing investment.

D. It allowed for the innovation of backing paper money with silver to ensure its value.

Answer 1

C

The fall of the Western Roman Empire disrupted imperial trade and monetary systems, which over time led to new commercial institutions (especially in medieval Italian cities) — advances in banking, credit instruments and bookkeeping that made long-distance trade and investment much easier and helped pave the way for capitalism.