New NABARD Grade A 2024 Results out!! Register here for a free live workshop on Feb 26, 2025 at 5 PM. Only on Zoom.

    Question

    Which of the following reasons were responsible for

    making London- a dominant financial center?
    A Due to its position as the center of the British Empire Correct Answer Incorrect Answer
    B British Economy was the largest economy in the world Correct Answer Incorrect Answer
    C London was also home to the Bank of England, the world's first central bank Correct Answer Incorrect Answer
    D Due to its cold and humid climate that attracted major business houses to London Correct Answer Incorrect Answer
    E a, b & c Correct Answer Incorrect Answer

    Solution

    The evolution of GFCs can be traced back to the rise of international trade and finance in the late Middle Ages, when cities such as Bruges, Genoa, and Venice emerged as key commercial hubs. However, the modern era of GFCs began in the 19th century, with the growth of industrialization and globalization. During this time, London emerged as the dominant financial center, due to its position as the center of the British Empire and the largest economy in the world. London was also home to the Bank of England, the world's first central bank, which played a crucial role in stabilizing the financial system and promoting economic growth.

    Practice Next