Growth of Banks in Italy During the Medieval Period

How Medieval Italian Bankers Grew Rich Making Interest-Free Loans
Please also note that your answers should be written in your own words. Don’t use quotes from the Internet, articles, or textbooks.
For this week discussion you will be using the case How Medieval Italian Bankers Grew Rich Making Interest-Free Loans.
https://sk-sagepub-com.ezproxy.umgc.edu/cases/how-medieval-italian-bankers-grew-rich-making-interest-free-loans

In your initial response you should answer all questions:
Discussion Questions:
• In addition to those mentioned in the case, think of other legitimate business transactions that a lender could use to camouflage an interest-bearing loan. Also discuss the kind of regulations that would be needed to ensure that the prohibition on charging interest was adhered to in spirit as well as in letter. What would be some of the effects of enforcing such regulations?
• Some readers will recognize that when the Italian bankers agreed to (a) a price of wool to be delivered in the future, or (b) the exchange rate for a loan repayment in a foreign currency to be received in the future, they were entering into forward contracts. A forward contract is basically a bet on the future price of a product or currency and can be an enormous source of profits for someone who, compared to the other contracting party, is able to predict future price changes more accurately. Can you think of reasons why a banker might have been able to predict future price changes more accurately than his contracting parties?
• Reflection – the students also should include a paragraph in the initial response in their own words reflecting on specifically what they learned from the assignment and how they think they could apply what they learned in the workplace or in everyday life.