Banking System
Without banks, people relied on personal promises or signed deeds. These promises and deeds only proved to cause problems and disagreements, thus, a new financial system was born. The banking system during the industrial revolution was not entirely flawless, but it still managed to function in a working manner. The media of payment included bartering, coins, transfers, and bills of exchange. Entrepreneurs also relied on the banking system for loans to fund their inventions. An entrepreneur are those who managed and assumed the financial risks of starting new businesses. The banks provided this money used to invest in enterprises, called capital. An enterprise is a business organization in an area such as shipping, mining, railroads, or factories.