Identify the technological and economic innovations that facilitated the Commercial Revolution.
A. Navigational technology, joint-stock companies, banks, and loans.
B. Mercantilism, joint-stock companies, banks, and insurance companies.
C. Navigational technology, joint-stock companies, banks, and insurance companies.
D. Navigational technology, joint-stock companies, banks, exploitation.
The correct answer is C. Navigational technology, joint-stock companies, banks, and insurance companies.
To identify the technological and economic innovations that facilitated the Commercial Revolution, we need to understand what these innovations are and how they contributed to this period of economic growth and trade expansion.
1. Navigational technology: One of the key factors that facilitated the Commercial Revolution was the improvement in navigational technology. This includes advancements in shipbuilding, navigation instruments (such as the astrolabe and compass), and improved understanding of wind patterns and ocean currents. These advancements allowed for longer and more reliable sea voyages, which in turn facilitated trade and exploration.
2. Joint-stock companies: Joint-stock companies were another crucial innovation during this period. These were companies in which individuals pooled their resources by buying shares of stock to finance large-scale trade ventures. Joint-stock companies allowed for the mobilization of larger amounts of capital, spreading risks among multiple investors. This allowed merchants to engage in longer and more lucrative trade ventures, contributing significantly to the Commercial Revolution.
3. Banks: The rise of banking institutions was instrumental in facilitating the Commercial Revolution. Banks provided a range of financial services, including safekeeping of money, lending, currency exchange, and investment. They played a crucial role in facilitating trade by providing credit and financing to merchants and enabling the transfer of funds across long distances.
4. Insurance companies: Insurance companies emerged during the Commercial Revolution to provide coverage against risks inherent in long-distance trade. Maritime insurance, in particular, protected merchants against losses due to shipwrecks, piracy, and other maritime risks. By transferring the risk of loss to insurance companies, merchants could engage in riskier and more profitable trade ventures, thereby encouraging trade expansion.
Therefore, considering these technological and economic innovations, the correct answer is C. Navigational technology, joint-stock companies, banks, and insurance companies.