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155-465: In finance and economics , interest is payment from a debtor or deposit-taking financial institution to a lender or depositor of an amount above repayment of the principal sum (that is, the amount borrowed), at a particular rate. It is distinct from a fee which the borrower may pay to the lender or some third party. It is also distinct from dividend which is paid by a company to its shareholders (owners) from its profit or reserve , but not at
310-594: A " prisoner in the Vatican ". This stand-off, which was spoken of as the Roman Question , was resolved by the 1929 Lateran Treaties , whereby the Holy See acknowledged Italian sovereignty over the former Papal States in return for payment and Italy's recognition of papal sovereignty over Vatican City as a new sovereign and independent state. Catholic missionaries generally supported, and sought to facilitate,
465-441: A "different view". The first written evidence of compound interest dates roughly 2400 BC. The annual interest rate was roughly 20%. Compound interest was necessary for the development of agriculture and important for urbanization. While the traditional Middle Eastern views on interest were the result of the urbanized, economically developed character of the societies that produced them, the new Jewish prohibition on interest showed
620-428: A broad range of subfields exists within finance. Asset- , money- , risk- and investment management aim to maximize value and minimize volatility . Financial analysis assesses the viability, stability, and profitability of an action or entity. Some fields are multidisciplinary, such as mathematical finance , financial law , financial economics , financial engineering and financial technology . These fields are
775-502: A concept is unknown, though its use in Sumeria argue that it was well established as a concept by 3000BC if not earlier, with historians believing that the concept in its modern sense may have arisen from the lease of animal or seeds for productive purposes. The argument that acquired seeds and animals could reproduce themselves was used to justify interest, but ancient Jewish religious prohibitions against usury (נשך NeSheKh ) represented
930-424: A growth factor according to the periodic interest, and then decreases by the amount paid p at the end of each period: where By repeated substitution, one obtains expressions for B n , which are linearly proportional to B 0 and p , and use of the formula for the partial sum of a geometric series results in A solution of this expression for p in terms of B 0 and B n reduces to To find
1085-431: A high degree of computational complexity and are slow to converge to a solution on classical computers. In particular, when it comes to option pricing, there is additional complexity resulting from the need to respond to quickly changing markets. For example, in order to take advantage of inaccurately priced stock options, the computation must complete before the next change in the almost continuously changing stock market. As
1240-492: A loan or other debt obligations. The main areas of personal finance are considered to be income, spending, saving, investing, and protection. The following steps, as outlined by the Financial Planning Standards Board, suggest that an individual will understand a potentially secure personal finance plan after: Corporate finance deals with the actions that managers take to increase the value of
1395-738: A long-term strategic perspective regarding investment decisions that affect public entities. These long-term strategic periods typically encompass five or more years. Public finance is primarily concerned with: Central banks, such as the Federal Reserve System banks in the United States and the Bank of England in the United Kingdom , are strong players in public finance. They act as lenders of last resort as well as strong influences on monetary and credit conditions in
1550-414: A mix of an art and science , and there are ongoing related efforts to organize a list of unsolved problems in finance . Managerial finance is the branch of finance that deals with the financial aspects of the management of a company, and the financial dimension of managerial decision-making more broadly. It provides the theoretical underpin for the practice described above , concerning itself with
1705-445: A particular rate decided beforehand, rather on a pro rata basis as a share in the reward gained by risk taking entrepreneurs when the revenue earned exceeds the total costs. For example, a customer would usually pay interest to borrow from a bank, so they pay the bank an amount which is more than the amount they borrowed; or a customer may earn interest on their savings, and so they may withdraw more than they originally deposited. In
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#17327717446271860-458: A pastoral, tribal influence. In the early 2nd millennium BC, since silver used in exchange for livestock or grain could not multiply of its own, the Laws of Eshnunna instituted a legal interest rate, specifically on deposits of dowry . Early Muslims called this riba , translated today as the charging of interest. The First Council of Nicaea , in 325, forbade clergy from engaging in usury which
2015-447: A result, the finance community is always looking for ways to overcome the resulting performance issues that arise when pricing options. This has led to research that applies alternative computing techniques to finance. Most commonly used quantum financial models are quantum continuous model, quantum binomial model, multi-step quantum binomial model etc. The origin of finance can be traced to the beginning of state formation and trade during
2170-446: A sophisticated mathematical model is required, and thus overlaps several of the above. As a specialized practice area, quantitative finance comprises primarily three sub-disciplines; the underlying theory and techniques are discussed in the next section: DCF valuation formula widely applied in business and finance, since articulated in 1938 . Here, to get the value of the firm , its forecasted free cash flows are discounted to
2325-692: A subject of study, it is related to but distinct from economics , which is the study of the production , distribution , and consumption of goods and services . Based on the scope of financial activities in financial systems , the discipline can be divided into personal , corporate , and public finance . In these financial systems, assets are bought, sold, or traded as financial instruments , such as currencies , loans , bonds , shares , stocks , options , futures , etc. Assets can also be banked , invested , and insured to maximize value and minimize loss. In practice, risks are always present in any financial action and entities. Due to its wide scope,
2480-578: A variety of historical circumstances. In the 16th century, the Reformation led to the formation of separate, Protestant groups. From the late 20th century, the Catholic Church has been criticized for its teachings on sexuality , its doctrine against ordaining women , and its handling of sexual abuse cases involving clergy. Catholic (from Greek : καθολικός , romanized : katholikos , lit. 'universal')
2635-398: A well-diversified portfolio, achieved investment performance will, in general, largely be a function of the asset mix selected, while the individual securities are less impactful. The specific approach or philosophy will also be significant, depending on the extent to which it is complementary with the market cycle . Risk management here is discussed immediately below. A quantitative fund
2790-482: Is about performing valuation and asset allocation today, based on the risk and uncertainty of future outcomes while appropriately incorporating the time value of money . Determining the present value of these future values, "discounting", must be at the risk-appropriate discount rate , in turn, a major focus of finance-theory. As financial theory has roots in many disciplines, including mathematics, statistics, economics, physics, and psychology, it can be considered
2945-407: Is calculated only on the principal amount, or on that portion of the principal amount that remains. It excludes the effect of compounding . Simple interest can be applied over a time period other than a year, for example, every month. Simple interest is calculated according to the following formula: where For example, imagine that a credit card holder has an outstanding balance of $ 2500 and that
3100-415: Is equal to the interest amount paid or received over a particular period divided by the principal sum borrowed or lent (usually expressed as a percentage). Compound interest means that interest is earned on prior interest in addition to the principal. Due to compounding, the total amount of debt grows exponentially, and its mathematical study led to the discovery of the number e . In practice, interest
3255-540: Is generally regarded as an institution that has its origin in the Medieval Christian setting. The massive Islamic invasions of the mid-7th century began a long struggle between Christianity and Islam throughout the Mediterranean Basin. The Byzantine Empire soon lost the lands of the eastern patriarchates of Jerusalem , Alexandria and Antioch and was reduced to that of Constantinople,
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#17327717446273410-436: Is managed using computer-based mathematical techniques (increasingly, machine learning ) instead of human judgment. The actual trading is typically automated via sophisticated algorithms . Risk management , in general, is the study of how to control risks and balance the possibility of gains; it is the process of measuring risk and then developing and implementing strategies to manage that risk. Financial risk management
3565-444: Is mathematics that is actually important in this new scenario Finance theory is heavily based on financial instrument pricing such as stock option pricing. Many of the problems facing the finance community have no known analytical solution. As a result, numerical methods and computer simulations for solving these problems have proliferated. This research area is known as computational finance . Many computational finance problems have
3720-402: Is most often calculated on a daily, monthly, or yearly basis, and its impact is influenced greatly by its compounding rate. Credit is thought to have preceded the existence of coinage by several thousands of years. The first recorded instance of credit is a collection of old Sumerian documents from 3000 BC that show systematic use of credit to loan both grain and metals. The rise of interest as
3875-657: Is often indirect, through a financial intermediary such as a bank , or via the purchase of notes or bonds ( corporate bonds , government bonds , or mutual bonds) in the bond market . The lender receives interest, the borrower pays a higher interest than the lender receives, and the financial intermediary earns the difference for arranging the loan. A bank aggregates the activities of many borrowers and lenders. A bank accepts deposits from lenders, on which it pays interest. The bank then lends these deposits to borrowers. Banks allow borrowers and lenders, of different sizes, to coordinate their activity. Investing typically entails
4030-408: Is prohibited, as well as making money out of money is unacceptable. All financial transactions must be asset-backed and must not charge any interest or fee for the service of lending. It is thought that Jacob Bernoulli discovered the mathematical constant e by studying a question about compound interest . He realized that if an account that starts with $ 1.00 and pays say 100% interest per year, at
4185-497: Is referred to as "wholesale finance". Institutions here extend the products offered , with related trading, to include bespoke options , swaps , and structured products , as well as specialized financing ; this " financial engineering " is inherently mathematical , and these institutions are then the major employers of "quants" (see below ). In these institutions, risk management , regulatory capital , and compliance play major roles. As outlined, finance comprises, broadly,
4340-685: Is the bishop of Rome , known as the pope ( Latin : papa , lit. 'father'), whose jurisdiction is called the Holy See ( Sancta Sedes in Latin). In parallel to the diocesan structure are a variety of religious institutes that function autonomously, often subject only to the authority of the pope, though sometimes subject to the local bishop. Most religious institutes only have male or female members but some have both. Additionally, lay members aid many liturgical functions during worship services. The Catholic Church has been described as
4495-515: Is the largest Christian church , with 1.28 to 1.39 billion baptized Catholics worldwide as of 2024. It is among the world's oldest and largest international institutions and has played a prominent role in the history and development of Western civilization . The church consists of 24 sui iuris churches , including the Latin Church and 23 Eastern Catholic Churches , which comprise almost 3,500 dioceses and eparchies around
4650-471: Is the branch of economics that studies the interrelation of financial variables , such as prices , interest rates and shares, as opposed to real economic variables, i.e. goods and services . It thus centers on pricing, decision making, and risk management in the financial markets , and produces many of the commonly employed financial models . ( Financial econometrics is the branch of financial economics that uses econometric techniques to parameterize
4805-485: Is the practice of protecting corporate value against financial risks , often by "hedging" exposure to these using financial instruments. The focus is particularly on credit and market risk, and in banks, through regulatory capital, includes operational risk. Financial risk management is related to corporate finance in two ways. Firstly, firm exposure to market risk is a direct result of previous capital investments and funding decisions; while credit risk arises from
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4960-491: Is the universal [katholike] Church." In the Catechetical Lectures ( c. 350 ) of Saint Cyril of Jerusalem , the name "Catholic Church" was used to distinguish it from other groups that also called themselves "the church". The "Catholic" notion was further stressed in the edict De fide Catolica issued 380 by Theodosius I , the last emperor to rule over both the eastern and the western halves of
5115-400: Is then often referred to as "business finance". Typically, "corporate finance" relates to the long term objective of maximizing the value of the entity's assets , its stock , and its return to shareholders , while also balancing risk and profitability . This entails three primary areas: The latter creates the link with investment banking and securities trading , as above, in that
5270-651: The Pax Romana made travelling safe. The empire encouraged the spread of a common culture with Greek roots, which allowed ideas to be more easily expressed and understood. Unlike most religions in the Roman Empire, however, Christianity required its adherents to renounce all other gods, a practice adopted from Judaism (see Idolatry ). The Christians' refusal to join pagan celebrations meant they were unable to participate in much of public life, which caused non-Christians—including government authorities—to fear that
5425-665: The Bronze Age . The earliest historical evidence of finance is dated to around 3000 BCE. Banking originated in West Asia, where temples and palaces were used as safe places for the storage of valuables. Initially, the only valuable that could be deposited was grain, but cattle and precious materials were eventually included. During the same period, the Sumerian city of Uruk in Mesopotamia supported trade by lending as well as
5580-809: The Byzantine–Seljuk Wars , which caused Urban to launch the First Crusade aimed at aiding the Byzantine Empire and returning the Holy Land to Christian control. In the 11th century , strained relations between the primarily Greek church and the Latin Church separated them in the East–West Schism, partially due to conflicts over papal authority. The Fourth Crusade and the sacking of Constantinople by renegade crusaders proved
5735-767: The Church of the East also shared in this communion, as did the Oriental Orthodox Churches before the Council of Chalcedon in AD 451; all separated primarily over differences in Christology . The Eastern Catholic Churches, who have a combined membership of approximately 18 million, represent a body of Eastern Christians who returned or remained in communion with the pope during or following these schisms for
5890-721: The Code of Canon Law (1983). "Catholic Church" is also used in the documents of the Second Vatican Council (1962–1965), the First Vatican Council (1869–1870), the Council of Trent (1545–1563), and numerous other official documents. The New Testament , in particular the Gospels , records Jesus' activities and teaching, his appointment of the Twelve Apostles and his Great Commission of
6045-666: The Council of Nicaea declared heretical . The resulting religious discord between Germanic rulers and Catholic subjects was avoided when, in 497, Clovis I , the Frankish ruler, converted to orthodox Catholicism, allying himself with the papacy and the monasteries. The Visigoths in Spain followed his lead in 589, and the Lombards in Italy in the course of the 7th century. Western Christianity , particularly through its monasteries ,
6200-733: The Edict of Thessalonica made Nicene Christianity the state church of the Roman Empire , a position that within the diminishing territory of the Byzantine Empire would persist until the empire itself ended in the fall of Constantinople in 1453, while elsewhere the church was independent of the empire, as became particularly clear with the East–West Schism . During the period of the Seven Ecumenical Councils , five primary sees emerged, an arrangement formalized in
6355-766: The English Reformation and the eventual development of Anglicanism . The Reformation contributed to clashes between the Protestant Schmalkaldic League and the Catholic Emperor Charles V and his allies. The first nine-year war ended in 1555 with the Peace of Augsburg but continued tensions produced a far graver conflict—the Thirty Years' War —which broke out in 1618. In France, a series of conflicts termed
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6510-607: The French Wars of Religion was fought from 1562 to 1598 between the Huguenots (French Calvinists ) and the forces of the French Catholic League , which were backed and funded by a series of popes. This ended under Pope Clement VIII , who hesitantly accepted King Henry IV's 1598 Edict of Nantes granting civil and religious toleration to French Protestants. The Council of Trent (1545–1563) became
6665-543: The Immaculate Conception as a dogma in the Catholic Church . In 1870, the First Vatican Council affirmed the doctrine of papal infallibility when exercised in specifically defined pronouncements, striking a blow to the rival position of conciliarism . Controversy over this and other issues resulted in a breakaway movement called the Old Catholic Church , The Italian unification of
6820-712: The Italian Peninsula , imprisoning Pope Pius VI , who died in captivity. Napoleon later re-established the Catholic Church in France through the Concordat of 1801 . The end of the Napoleonic Wars brought Catholic revival and the return of the Papal States . In 1854, Pope Pius IX , with the support of the overwhelming majority of Catholic bishops, whom he had consulted from 1851 to 1853, proclaimed
6975-462: The Nicene Creed . The Catholic Church teaches that it is the one, holy, catholic and apostolic church founded by Jesus Christ in his Great Commission , that its bishops are the successors of Christ's apostles , and that the pope is the successor to Saint Peter , upon whom primacy was conferred by Jesus Christ. It maintains that it practises the original Christian faith taught by
7130-552: The Polish People's Republic , became the first non-Italian pope in 455 years. His 26 1/2-year pontificate was one of the longest in history, and was credited with hastening the fall of communism in Europe. John Paul II sought to evangelize an increasingly secular world . He travelled more than any other pope, visiting 129 countries, and used television and radio as means of spreading the church's teachings. He also emphasized
7285-875: The Protestant Reformation of the 16th century, when those who ceased to be in communion became known as Protestants. While the Roman Church has been used to describe the pope's Diocese of Rome since the Fall of the Western Roman Empire and into the Early Middle Ages (6th–10th century), Roman Catholic Church has been applied to the whole church in the English language since the Protestant Reformation in
7440-674: The Roman Empire , when establishing the state church of the Roman Empire . Since the East–West Schism of 1054, the Eastern Orthodox Church has taken the adjective Orthodox as its distinctive epithet; its official name continues to be the Orthodox Catholic Church. The Latin Church was described as Catholic , with that description also denominating those in communion with the Holy See after
7595-610: The Roman Republic , interest was outlawed by the Lex Genucia reforms in 342 BCE, though the provision went largely unenforced. Under Julius Caesar , a ceiling on interest rates of 12% was set, and much later under Justinian it was lowered even further to between 4% and 8%. Catholic Church God Schools Relations with: The Catholic Church , also known as the Roman Catholic Church ,
7750-669: The Tridentine Mass as found in the Roman Missal of 1962, which he titled the "Extraordinary Form". Citing the frailties of advanced age, Benedict resigned in 2013, becoming the first pope to do so in nearly 600 years. Pope Francis, the current pope of the Catholic Church, became in 2013 the first pope from the Americas, the first from the Southern Hemisphere , and the first Pope from outside Europe since
7905-476: The University of Oxford , University of Paris , and University of Bologna . Higher education before then had been the domain of Christian cathedral schools or monastic schools, led by monks and nuns . Evidence of such schools dates back to the 6th century CE. These new universities expanded the curriculum to include academic programs for clerics, lawyers, civil servants, and physicians. The university
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#17327717446278060-562: The dignity of work and natural rights of labourers to have fair wages and safe conditions in Laborem exercens . He emphasized several church teachings, including moral exhortations against abortion, euthanasia , and against widespread use of the death penalty, in Evangelium Vitae . Pope Benedict XVI , elected in 2005, was known for upholding traditional Christian values against secularization , and for increasing use of
8215-446: The managerial application of the various finance techniques . Academics working in this area are typically based in business school finance departments, in accounting , or in management science . The tools addressed and developed relate in the main to managerial accounting and corporate finance : the former allow management to better understand, and hence act on, financial information relating to profitability and performance;
8370-724: The numerical methods applied here. Experimental finance aims to establish different market settings and environments to experimentally observe and provide a lens through which science can analyze agents' behavior and the resulting characteristics of trading flows, information diffusion, and aggregation, price setting mechanisms, and returns processes. Researchers in experimental finance can study to what extent existing financial economics theory makes valid predictions and therefore prove them, as well as attempt to discover new principles on which such theory can be extended and be applied to future financial decisions. Research may proceed by conducting trading simulations or by establishing and studying
8525-526: The theory of fructification . By applying an opportunity cost argument, comparing the loan rate with the rate of return on agricultural land, and a mathematical argument, applying the formula for the value of a perpetuity to a plantation, he argued that the land value would rise without limit, as the interest rate approached zero. For the land value to remain positive and finite keeps the interest rate above zero. Adam Smith , Carl Menger , and Frédéric Bastiat also propounded theories of interest rates. In
8680-408: The $ 6 per year after only 6 months ( time preference ), and so has the opportunity to reinvest the first $ 3 coupon payment after the first 6 months, and earn additional interest. For example, suppose an investor buys $ 10,000 par value of a US dollar bond, which pays coupons twice a year, and that the bond's simple annual coupon rate is 6 percent per year. This means that every 6 months, the issuer pays
8835-536: The 14th century. To escape instability in Rome, Clement V in 1309 became the first of seven popes to reside in the fortified city of Avignon in southern France during a period known as the Avignon Papacy . The Avignon Papacy ended in 1376 when the pope returned to Rome, but was followed in 1378 by the 38-year-long Western schism , with claimants to the papacy in Rome, Avignon and (after 1409) Pisa. The matter
8990-644: The 1860s incorporated the Papal States, including Rome itself from 1870, into the Kingdom of Italy , thus ending the papacy's temporal power . In response, Pope Pius IX excommunicated King Victor Emmanuel II , refused payment for the land, and rejected the Italian Law of Guarantees , which granted him special privileges. To avoid placing himself in visible subjection to the Italian authorities, he remained
9145-522: The 1960s, Pope John XXIII convened the Second Vatican Council , which ushered in radical change to church ritual and practice, and in the later 20th century, the long reign of Pope John Paul II contributed to the fall of communism in Europe, and a new public and international role for the papacy. From the late 20th century, the Catholic Church has been criticized for its doctrines on sexuality , its inability to ordain women , and its handling of sexual abuse cases . Pope Pius X (1903–1914) renewed
9300-620: The 21st century. Pope Gregory VII further initiated the Gregorian Reforms regarding the independence of the clergy from secular authority. This led to the Investiture Controversy between the church and the Holy Roman Emperors , over which had the authority to appoint bishops and popes. In 1095, Byzantine emperor Alexius I appealed to Pope Urban II for help against renewed Muslim invasions in
9455-416: The Americas, Asia and Oceania by explorers, conquistadors, and missionaries, as well as by the transformation of societies through the socio-political mechanisms of colonial rule. Pope Alexander VI had awarded colonial rights over most of the newly discovered lands to Spain and Portugal and the ensuing patronato system allowed state authorities, not the Vatican, to control all clerical appointments in
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#17327717446279610-402: The Byzantine Empire lost to the Lombards the city of Ravenna from which it governed the small fragments of Italy, including Rome, that acknowledged its sovereignty. The fall of Ravenna meant that confirmation by a no longer existent exarch was not asked for during the election in 752 of Pope Stephen II and that the papacy was forced to look elsewhere for a civil power to protect it. In 754, at
9765-594: The Catholic and Orthodox churches. Several eastern churches reunited, forming the majority of the Eastern Catholic Churches . The Age of Discovery beginning in the 15th century saw the expansion of Western Europe's political and cultural influence worldwide. Because of the prominent role the strongly Catholic nations of Spain and Portugal played in Western colonialism, Catholicism was spread to
9920-422: The Christians were angering the gods and thereby threatening the peace and prosperity of the Empire. The resulting persecutions were a defining feature of Christian self-understanding until Christianity was legalized in the 4th century. In 313, Emperor Constantine I 's Edict of Milan legalized Christianity, and in 330 Constantine moved the imperial capital to Constantinople , modern Istanbul, Turkey . In 380
10075-457: The Edict of Nantes by King Louis XIV of France , which ended a century-long policy of religious toleration of Protestant Huguenots. As the papacy resisted pushes for Gallicanism , the French Revolution of 1789 shifted power to the state, caused the destruction of churches, the establishment of a Cult of Reason , and the martyrdom of nuns during the Reign of Terror . In 1798, Napoleon Bonaparte 's General Louis-Alexandre Berthier invaded
10230-401: The European imperial powers' conquest of Africa during the late nineteenth century. According to the historian of religion Adrian Hastings , Catholic missionaries were generally unwilling to defend African rights or encourage Africans to see themselves as equals to Europeans, in contrast to Protestant missionaries, who were more willing to oppose colonial injustices. During the 20th century,
10385-447: The Holy See, or the Apostolic See (meaning the see of the apostle Peter). Directly serving the pope is the Roman Curia, the central governing body that administers the day-to-day business of the Catholic Church. The pope is also sovereign of Vatican City, a small city-state entirely enclaved within the city of Rome, which is an entity distinct from the Holy See. It is as head of the Holy See, not as head of Vatican City State, that
10540-402: The Pope's insistence on public neutrality and diplomatic language has become a source of much criticism and debate. Nevertheless, in every country under German occupation, priests played a major part in rescuing Jews. Israeli historian Pinchas Lapide estimated that Catholic rescue of Jews amounted to somewhere between 700,000 and 860,000 people. The Nazi persecution of the Catholic Church
10695-410: The Reformation, which gave birth to the great majority of Protestant denominations and also crypto-Protestantism within the Catholic Church. Meanwhile, Henry VIII petitioned Pope Clement VII for a declaration of nullity concerning his marriage to Catherine of Aragon . When this was denied, he had the Acts of Supremacy passed to make himself Supreme Head of the Church of England , spurring
10850-499: The Second World War, also because they had powerful supporters from the Vatican. The judgment of Pius XII is made more difficult by the sources, because the church archives for his tenure as nuncio, cardinal secretary of state and pope are in part closed or not yet processed. The Second Vatican Council (1962–65) introduced the most significant changes to Catholic practices since the Council of Trent, four centuries before. Initiated by Pope John XXIII, this ecumenical council modernized
11005-484: The War, and established aid networks to help victims, but he secretly assisted the anti-Hitler resistance and shared intelligence with the Allies. His first encyclical Summi Pontificatus (1939) expressed dismay at the 1939 Invasion of Poland and reiterated Catholic teaching against racism. He expressed concern against race killings on Vatican Radio , and intervened diplomatically to attempt to block Nazi deportations of Jews in various countries from 1942 to 1944. But
11160-478: The above " Fundamental theorem of asset pricing ". The subject has a close relationship with financial economics, which, as outlined, is concerned with much of the underlying theory that is involved in financial mathematics: generally, financial mathematics will derive and extend the mathematical models suggested. Computational finance is the branch of (applied) computer science that deals with problems of practical interest in finance, and especially emphasizes
11315-575: The apostles, instructing them to continue his work. The book Acts of Apostles , tells of the founding of the Christian church and the spread of its message to the Roman Empire. The Catholic Church teaches that its public ministry began on Pentecost , occurring fifty days following the date Christ is believed to have resurrected . At Pentecost, the apostles are believed to have received the Holy Spirit, preparing them for their mission in leading
11470-466: The apostles, preserving the faith infallibly through scripture and sacred tradition as authentically interpreted through the magisterium of the church. The Roman Rite and others of the Latin Church, the Eastern Catholic liturgies , and institutes such as mendicant orders , enclosed monastic orders and third orders reflect a variety of theological and spiritual emphases in
11625-466: The appearance of appropriate conditions for entrepreneurs to start new, lucrative businesses. Given that borrowed money was no longer strictly for consumption but for production as well, interest was no longer viewed in the same manner. The first attempt to control interest rates through manipulation of the money supply was made by the Banque de France in 1847. The latter half of the 20th century saw
11780-527: The areas under his control definitively established a form of caesaropapism , in which "he had the right and duty of regulating by his laws the minutest details of worship and discipline, and also of dictating the theological opinions to be held in the Church", re-established imperial power over Rome and other parts of the West, initiating the period termed the Byzantine Papacy (537–752), during which
11935-443: The balances instead of being subtracted, and the formula for the payment is the negative of the one above. These formulas are only approximate since actual loan balances are affected by rounding. To avoid an underpayment at the end of the loan, the payment must be rounded up to the next cent. Finance Finance refers to monetary resources and to the study and discipline of money , currency , assets and liabilities . As
12090-501: The behavior of people in artificial, competitive, market-like settings. Behavioral finance studies how the psychology of investors or managers affects financial decisions and markets and is relevant when making a decision that can impact either negatively or positively on one of their areas. With more in-depth research into behavioral finance, it is possible to bridge what actually happens in financial markets with analysis based on financial theory. Behavioral finance has grown over
12245-529: The benefit to the borrower, and interest received by the lender in terms of a premium for the risk of default . In the sixteenth century, Martín de Azpilcueta applied a time preference argument: it is preferable to receive a given good now rather than in the future. Accordingly, interest is compensation for the time the lender forgoes the benefit of spending the money. On the question of why interest rates are normally greater than zero, in 1770, French economist Anne-Robert-Jacques Turgot, Baron de Laune proposed
12400-626: The bishops of Rome, or popes, required approval from the emperor in Constantinople or from his representative in Ravenna for consecration, and most were selected by the emperor from his Greek-speaking subjects, resulting in a "melting pot" of Western and Eastern Christian traditions in art as well as liturgy. Most of the Germanic tribes who in the following centuries invaded the Roman Empire had adopted Christianity in its Arian form, which
12555-579: The business's credit policy and is often addressed through credit insurance and provisioning . Secondly, both disciplines share the goal of enhancing or at least preserving, the firm's economic value , and in this context overlaps also enterprise risk management , typically the domain of strategic management . Here, businesses devote much time and effort to forecasting , analytics and performance monitoring . (See ALM and treasury management .) For banks and other wholesale institutions, risk management focuses on managing, and as necessary hedging,
12710-891: The capital raised will generically comprise debt, i.e. corporate bonds , and equity , often listed shares . Re risk management within corporates, see below . Financial managers—i.e. as distinct from corporate financiers—focus more on the short term elements of profitability, cash flow, and " working capital management " ( inventory , credit and debtors ), ensuring that the firm can safely and profitably carry out its financial and operational objectives; i.e. that it: (1) can service both maturing short-term debt repayments, and scheduled long-term debt payments, and (2) has sufficient cash flow for ongoing and upcoming operational expenses . (See Financial management and Financial planning and analysis .) Public finance describes finance as related to sovereign states, sub-national entities, and related public entities or agencies. It generally encompasses
12865-434: The case of savings, the customer is the lender, and the bank plays the role of the borrower. Interest differs from profit , in that interest is received by a lender, whereas profit is received by the owner of an asset , investment or enterprise . (Interest may be part or the whole of the profit on an investment , but the two concepts are distinct from each other from an accounting perspective.) The rate of interest
13020-496: The church's approach to ecumenism , and a call to improved relations with non-Christian religions, especially Judaism, in its document Nostra aetate . The council, however, generated significant controversy in implementing its reforms: proponents of the " Spirit of Vatican II " such as Swiss theologian Hans Küng said that Vatican II had "not gone far enough" to change church policies. Traditionalist Catholics , such as Archbishop Marcel Lefebvre , however, strongly criticized
13175-466: The church's global reach continued to grow, despite the rise of anti-Catholic authoritarian regimes and the collapse of European Empires, accompanied by a general decline in religious observance in the West. Under Popes Benedict XV , and Pius XII , the Holy See sought to maintain public neutrality through the World Wars, acting as peace broker and delivering aid to the victims of the conflicts. In
13330-687: The church. Of its seven sacraments , the Eucharist is the principal one, celebrated liturgically in the Mass . The church teaches that through consecration by a priest , the sacrificial bread and wine become the body and blood of Christ . The Virgin Mary is venerated as the Perpetual Virgin , Mother of God , and Queen of Heaven ; she is honoured in dogmas and devotions . Catholic social teaching emphasizes voluntary support for
13485-592: The church. The Catholic Church teaches that the college of bishops , led by the bishop of Rome are the successors to the Apostles. In the account of the Confession of Peter found in the Gospel of Matthew , Christ designates Peter as the "rock" upon which Christ's church will be built. The Catholic Church considers the bishop of Rome, the pope, to be the successor to Saint Peter . Some scholars state Peter
13640-422: The church. There are three levels of clergy: the episcopate, composed of bishops who hold jurisdiction over a geographic area called a diocese or eparchy ; the presbyterate, composed of priests ordained by bishops and who work in local dioceses or religious orders; and the diaconate, composed of deacons who assist bishops and priests in a variety of ministerial roles. Ultimately leading the entire Catholic Church
13795-867: The conflict. Catholic clergy played a leading role in the government of the fascist Slovak State , which collaborated with the Nazis, copied their anti-Semitic policies, and helped them carry out the Holocaust in Slovakia. Jozef Tiso , the President of the Slovak State and a Catholic priest, supported his government's deportation of Slovakian Jews to extermination camps. The Vatican protested against these Jewish deportations in Slovakia and in other Nazi puppet regimes including Vichy France , Croatia, Bulgaria , Italy and Hungary. Around 1943, Adolf Hitler planned
13950-522: The council, arguing that its liturgical reforms led "to the destruction of the Holy Sacrifice of the Mass and the sacraments", among other issues. The teaching on the morality of contraception also came under scrutiny; after a series of disagreements, Humanae vitae upheld the church's prohibition of all forms of contraception. In 1978, Pope John Paul II , formerly Archbishop of Kraków in
14105-435: The development of the role of the papacy in the subsequent church". These roles, Brown says, "contributed enormously to seeing the bishop of Rome, the bishop of the city where Peter died and where Paul witnessed the truth of Christ, as the successor of Peter in care for the church universal". Conditions in the Roman Empire facilitated the spread of new ideas. The empire's network of roads and waterways facilitated travel, and
14260-554: The driving force behind the Counter-Reformation in response to the Protestant movement. Doctrinally, it reaffirmed central Catholic teachings such as transubstantiation and the requirement for love and hope as well as faith to attain salvation. In subsequent centuries, Catholicism spread widely across the world, in part through missionaries and imperialism , although its hold on European populations declined due to
14415-461: The economy. Development finance , which is related, concerns investment in economic development projects provided by a (quasi) governmental institution on a non-commercial basis; these projects would otherwise not be able to get financing . A public–private partnership is primarily used for infrastructure projects: a private sector corporate provides the financing up-front, and then draws profits from taxpayers or users. Climate finance , and
14570-735: The eighth-century Gregory III . Francis has made efforts to further close Catholicism's estrangement with the Eastern churches. His installation was attended by Patriarch Bartholomew I of Constantinople of the Eastern Orthodox Church, the first time since the Great Schism of 1054 that the Eastern Orthodox Ecumenical Patriarch of Constantinople has attended a papal installation, while he also met Patriarch Kirill of Moscow , head of
14725-698: The empire's capital. As a result of Islamic domination of the Mediterranean , the Frankish state, centred away from that sea, was able to evolve as the dominant power that shaped the Western Europe of the Middle Ages. The battles of Toulouse and Poitiers halted the Islamic advance in the West and the failed siege of Constantinople halted it in the East. Two or three decades later, in 751,
14880-400: The end of the year, the value is $ 2.00; but if the interest is computed and added twice in the year, the $ 1 is multiplied by 1.5 twice, yielding $ 1.00×1.5 = $ 2.25. Bernoulli noticed that if the frequency of compounding is increased without limit, this sequence can be modeled as follows: where n is the number of times the interest is to be compounded in a year. In economics,
15035-672: The excess, intending to earn a fair return. Correspondingly, an entity where income is less than expenditure can raise capital usually in one of two ways: (i) by borrowing in the form of a loan (private individuals), or by selling government or corporate bonds ; (ii) by a corporation selling equity , also called stock or shares (which may take various forms: preferred stock or common stock ). The owners of both bonds and stock may be institutional investors —financial institutions such as investment banks and pension funds —or private individuals, called private investors or retail investors. (See Financial market participants .) The lending
15190-510: The field is referred to as quantitative finance and / or mathematical finance, and comprises primarily the three areas discussed. The main mathematical tools and techniques are, correspondingly: Mathematically, these separate into two analytic branches : derivatives pricing uses risk-neutral probability (or arbitrage-pricing probability), denoted by "Q"; while risk and portfolio management generally use physical (or actual or actuarial) probability, denoted by "P". These are interrelated through
15345-416: The field. Quantum finance is an interdisciplinary field, in which theories and methods developed by quantum physicists and economists are applied to solve financial problems. It represents a branch known as econophysics. Although quantum computational methods have been around for quite some time and use the basic principles of physics to better understand the ways to implement and manage cash flows, it
15500-455: The final breach. In this age great gothic cathedrals in France were an expression of popular pride in the Christian faith. In the early 13th century mendicant orders were founded by Francis of Assisi and Dominic de Guzmán . The studia conventualia and studia generalia of the mendicant orders played a large role in the transformation of church-sponsored cathedral schools and palace schools, such as that of Charlemagne at Aachen , into
15655-410: The firm to the shareholders, the sources of funding and the capital structure of corporations, and the tools and analysis used to allocate financial resources. While corporate finance is in principle different from managerial finance , which studies the financial management of all firms rather than corporations alone, the concepts are applicable to the financial problems of all firms, and this area
15810-451: The first scholarly work in this area. The field is largely focused on the modeling of derivatives —with much emphasis on interest rate- and credit risk modeling —while other important areas include insurance mathematics and quantitative portfolio management . Relatedly, the techniques developed are applied to pricing and hedging a wide range of asset-backed , government , and corporate -securities. As above , in terms of practice,
15965-627: The flows of capital that take place between individuals and households ( personal finance ), governments ( public finance ), and businesses ( corporate finance ). "Finance" thus studies the process of channeling money from savers and investors to entities that need it. Savers and investors have money available which could earn interest or dividends if put to productive use. Individuals, companies and governments must obtain money from some external source, such as loans or credit, when they lack sufficient funds to run their operations. In general, an entity whose income exceeds its expenditure can lend or invest
16120-400: The foundation of business and accounting . In some cases, theories in finance can be tested using the scientific method , covered by experimental finance . The early history of finance parallels the early history of money , which is prehistoric . Ancient and medieval civilizations incorporated basic functions of finance, such as banking, trading and accounting, into their economies. In
16275-712: The fundamental risk mitigant here, investment managers will apply various hedging techniques as appropriate, these may relate to the portfolio as a whole or to individual stocks . Bond portfolios are often (instead) managed via cash flow matching or immunization , while for derivative portfolios and positions, traders use "the Greeks" to measure and then offset sensitivities. In parallel, managers — active and passive — will monitor tracking error , thereby minimizing and preempting any underperformance vs their "benchmark" . Quantitative finance—also referred to as "mathematical finance"—includes those finance activities where
16430-529: The growth of religious scepticism during and after the Enlightenment. From the 17th century onward, the Enlightenment questioned the power and influence of the Catholic Church over Western society. In the 18th century, writers such as Voltaire and the Encyclopédistes wrote biting critiques of both religion and the Catholic Church. One target of their criticism was the 1685 revocation of
16585-506: The heart of investment management is asset allocation — diversifying the exposure among these asset classes , and among individual securities within each asset class—as appropriate to the client's investment policy , in turn, a function of risk profile, investment goals, and investment horizon (see Investor profile ). Here: Overlaid is the portfolio manager's investment style —broadly, active vs passive , value vs growth , and small cap vs. large cap —and investment strategy . In
16740-403: The holder of the bond a coupon of 3 dollars per 100 dollars par value. At the end of 6 months, the issuer pays the holder: Assuming the market price of the bond is 100, so it is trading at par value, suppose further that the holder immediately reinvests the coupon by spending it on another $ 300 par value of the bond. In total, the investor therefore now holds: and so earns a coupon at the end of
16895-531: The independence of papal office by abolishing the veto of Catholic powers in papal elections, and his successors Benedict XV (1914–1922) and Pius XI (1922–1939) concluded the modern independence of the Vatican State within Italy. Benedict XV was elected at the outbreak of the First World War . He attempted to mediate between the powers and established a Vatican relief office, to assist victims of
17050-602: The kidnapping of the Pope and his internment in Germany. He gave SS General Wolff a corresponding order to prepare for the action. While Pope Pius XII has been credited with helping to save hundreds of thousands of Jews during the Holocaust , the church has also been accused of having encouraged centuries of antisemitism by its teachings and not doing enough to stop Nazi atrocities. Many Nazi criminals escaped overseas after
17205-591: The largest Eastern Orthodox church, in 2016; this was reported as the first such high-level meeting between the two churches since the Great Schism of 1054. In 2017 during a visit in Egypt , Pope Francis reestablished mutual recognition of baptism with the Coptic Orthodox Church . The Catholic Church follows an episcopal polity , led by bishops who have received the sacrament of Holy Orders who are given formal jurisdictions of governance within
17360-444: The last few decades to become an integral aspect of finance. Behavioral finance includes such topics as: A strand of behavioral finance has been dubbed quantitative behavioral finance , which uses mathematical and statistical methodology to understand behavioral biases in conjunction with valuation. Quantum finance involves applying quantum mechanical approaches to financial theory, providing novel methods and perspectives in
17515-550: The late 16th century. Further, some will refer to the Latin Church as Roman Catholic in distinction from the Eastern Catholic churches. "Roman Catholic" has occasionally appeared also in documents produced both by the Holy See, and notably used by certain national episcopal conferences and local dioceses. The name Catholic Church for the whole church is used in the Catechism of the Catholic Church (1990) and
17670-478: The late 19th century, Swedish economist Knut Wicksell in his 1898 Interest and Prices elaborated a comprehensive theory of economic crises based upon a distinction between natural and nominal interest rates . In the 1930s, Wicksell's approach was refined by Bertil Ohlin and Dennis Robertson and became known as the loanable funds theory. Other notable interest rate theories of the period are those of Irving Fisher and John Maynard Keynes . Simple interest
17825-423: The late 19th century, the global financial system was formed. In the middle of the 20th century, finance emerged as a distinct academic discipline, separate from economics. The earliest doctoral programs in finance were established in the 1960s and 1970s. Today, finance is also widely studied through career -focused undergraduate and master's level programs. As outlined, the financial system consists of
17980-427: The latter, as above, are about optimizing the overall financial structure, including its impact on working capital. Key aspects of managerial finance thus include: The discussion, however, extends to business strategy more broadly, emphasizing alignment with the company's overall strategic objectives; and similarly incorporates the managerial perspectives of planning, directing, and controlling. Financial economics
18135-577: The mid-6th century by Emperor Justinian I as the pentarchy of Rome, Constantinople , Antioch , Jerusalem and Alexandria . In 451 the Council of Chalcedon , in a canon of disputed validity, elevated the see of Constantinople to a position "second in eminence and power to the bishop of Rome". From c. 350 – c. 500 , the bishops, or popes, of Rome, steadily increased in authority through their consistent intervening in support of orthodox leaders in theological disputes, which encouraged appeals to them. Emperor Justinian , who in
18290-417: The nearest cent.) Compound interest includes interest earned on the interest that was previously accumulated. Compare, for example, a bond paying 6 percent semiannually (that is, coupons of 3 percent twice a year) with a certificate of deposit ( GIC ) that pays 6 percent interest once a year. The total interest payment is $ 6 per $ 100 par value in both cases, but the holder of the semiannual bond receives half
18445-741: The new colonies. In 1521 the Portuguese explorer Ferdinand Magellan made the first Catholic converts in the Philippines . Elsewhere, Portuguese missionaries under the Spanish Jesuit Francis Xavier evangelized in India, China, and Japan. The French colonization of the Americas beginning in the 16th century established a Catholic francophone population and forbade non-Catholics to settle in Quebec . In 1415, Jan Hus
18600-445: The next 6 months of: Assuming the bond remains priced at par, the investor accumulates at the end of a full 12 months a total value of: and the investor earned in total: The formula for the annual equivalent compound interest rate is: where For example, in the case of a 6% simple annual rate, the annual equivalent compound rate is: The outstanding balance B n of a loan after n regular payments increases each period by
18755-458: The numerous visual artists sponsored by the church. Historian Paul Legutko of Stanford University said the Catholic Church is "at the center of the development of the values, ideas, science, laws, and institutions which constitute what we call Western civilization ". In Western Christendom , the first universities in Europe were established by monks. Beginning in the 11th century, several older cathedral schools became universities, such as
18910-406: The oldest multinational organization in the world. The hierarchy of the Catholic Church is headed by the pope, currently Pope Francis , who was elected on 13 March 2013 by a papal conclave . The office of the pope is known as the papacy . The Catholic Church holds that Christ instituted the papacy upon giving the keys of Heaven to Saint Peter . His ecclesiastical jurisdiction is called
19065-406: The payment if the loan is to be finished in n payments, one sets B n = 0. The PMT function found in spreadsheet programs can be used to calculate the monthly payment of a loan: An interest-only payment on the current balance would be The total interest, I T , paid on the loan is The formulas for a regular savings program are similar, but the payments are added to
19220-683: The pope receives ambassadors of states and sends them his own diplomatic representatives. The Holy See also confers orders, decorations and medals , such as the orders of chivalry originating from the Middle Ages . While the famous Saint Peter's Basilica is located in Vatican City, above the traditional site of Saint Peter's tomb , the papal cathedral for the Diocese of Rome is the Archbasilica of Saint John Lateran , located within
19375-412: The practices of the Catholic Church, allowing the Mass to be said in the vernacular (local language) and encouraging "fully conscious, and active participation in liturgical celebrations". It intended to engage the church more closely with the present world ( aggiornamento ), which was described by its advocates as an "opening of the windows". In addition to changes in the liturgy, it led to changes to
19530-444: The present using the weighted average cost of capital for the discount factor. For share valuation investors use the related dividend discount model . Financial theory is studied and developed within the disciplines of management , (financial) economics , accountancy and applied mathematics . Abstractly, finance is concerned with the investment and deployment of assets and liabilities over "space and time"; i.e., it
19685-683: The preservation and transmission of ancient culture. During this period, monastic Ireland became a centre of learning and early Irish missionaries such as Columbanus and Columba spread Christianity and established monasteries across continental Europe. The Catholic Church was the dominant influence on Western civilization from Late Antiquity to the dawn of the modern age. It was the primary sponsor of Romanesque, Gothic, Renaissance, Mannerist and Baroque styles in art, architecture and music. Renaissance figures such as Raphael , Michelangelo , Leonardo da Vinci , Botticelli , Fra Angelico , Tintoretto , Titian , Bernini and Caravaggio are examples of
19840-462: The prominent universities of Europe. Scholastic theologians and philosophers such as the Dominican priest Thomas Aquinas studied and taught at these studia. Aquinas' Summa Theologica was an intellectual milestone in its synthesis of the legacy of ancient Greek philosophers such as Plato and Aristotle with the content of Christian revelation. A growing sense of church-state conflicts marked
19995-409: The purchase of stock , either individual securities or via a mutual fund , for example. Stocks are usually sold by corporations to investors so as to raise required capital in the form of " equity financing ", as distinct from the debt financing described above. The financial intermediaries here are the investment banks . The investment banks find the initial investors and facilitate the listing of
20150-749: The rate of 20 percent per year. By 1200 BCE, cowrie shells were used as a form of money in China . The use of coins as a means of representing money began in the years between 700 and 500 BCE. Herodotus mentions the use of crude coins in Lydia around 687 BCE and, by 640 BCE, the Lydians had started to use coin money more widely and opened permanent retail shops. Shortly after, cities in Classical Greece , such as Aegina , Athens , and Corinth , started minting their own coins between 595 and 570 BCE. During
20305-500: The rate of interest is the price of credit , and it plays the role of the cost of capital . In a free market economy, interest rates are subject to the law of supply and demand of the money supply , and one explanation of the tendency of interest rates to be generally greater than zero is the scarcity of loanable funds . Over centuries, various schools of thought have developed explanations of interest and interest rates. The School of Salamanca justified paying interest in terms of
20460-724: The related Environmental finance , address the financial strategies, resources and instruments used in climate change mitigation . Investment management is the professional asset management of various securities—typically shares and bonds, but also other assets, such as real estate, commodities and alternative investments —in order to meet specified investment goals for the benefit of investors. As above, investors may be institutions, such as insurance companies, pension funds, corporations, charities, educational establishments, or private investors, either directly via investment contracts or, more commonly, via collective investment schemes like mutual funds, exchange-traded funds , or REITs . At
20615-413: The relationships suggested.) The discipline has two main areas of focus: asset pricing and corporate finance; the first being the perspective of providers of capital, i.e. investors, and the second of users of capital; respectively: Financial mathematics is the field of applied mathematics concerned with financial markets ; Louis Bachelier's doctoral thesis , defended in 1900, is considered to be
20770-435: The rise of interest-free Islamic banking and finance , a movement that applies Islamic law to financial institutions and the economy. Some countries, including Iran, Sudan, and Pakistan, have taken steps to eradicate interest from their financial systems. Rather than charging interest, the interest-free lender shares the risk by investing as a partner in profit loss sharing scheme, because predetermined loan repayment as interest
20925-651: The same reason, interest has often been looked down upon in Islamic civilization , with almost all scholars agreeing that the Qur'an explicitly forbids charging interest. Medieval jurists developed several financial instruments to encourage responsible lending and circumvent prohibitions on usury, such as the Contractum trinius . In the Renaissance era, greater mobility of people facilitated an increase in commerce and
21080-590: The schism was reconciled, unresolved issues would lead to further division. In the 11th century, the efforts of Hildebrand of Sovana led to the creation of the College of Cardinals to elect new popes, starting with Pope Alexander II in the papal election of 1061 . When Alexander II died, Hildebrand was elected to succeed him, as Pope Gregory VII . The basic election system of the College of Cardinals which Gregory VII helped establish has continued to function into
21235-475: The securities, typically shares and bonds. Additionally, they facilitate the securities exchanges , which allow their trade thereafter, as well as the various service providers which manage the performance or risk of these investments. These latter include mutual funds , pension funds , wealth managers , and stock brokers , typically servicing retail investors (private individuals). Inter-institutional trade and investment, and fund-management at this scale ,
21390-569: The sick, the poor, and the afflicted through the corporal and spiritual works of mercy . The Catholic Church operates tens of thousands of Catholic schools, universities and colleges , hospitals , and orphanages around the world, and is the largest non-government provider of education and health care in the world. Among its other social services are numerous charitable and humanitarian organizations. The Catholic Church has profoundly influenced Western philosophy , culture , art , literature , music , law , and science . Catholics live all over
21545-490: The simple annual interest rate is 12.99% per annum , applied monthly, so the frequency of applying interest is 12 per year. Over one month, interest is due (rounded to the nearest cent). Simple interest applied over 3 months would be If the card holder pays off only interest at the end of each of the 3 months, the total amount of interest paid would be which is the simple interest applied over 3 months, as calculated above. (The one cent difference arises due to rounding to
21700-521: The term "bishop of Rome" to the most prominent members of the clergy in the earlier period and also to Peter himself. On this basis protestant scholars Oscar Cullmann , Henry Chadwick , and Bart D. Ehrman question whether there was a formal link between Peter and the modern papacy. Raymond E. Brown also says that it is anachronistic to speak of Peter in terms of local bishop of Rome, but that Christians of that period would have looked on Peter as having "roles that would contribute in an essential way to
21855-463: The thing and the use of the thing. In the medieval economy , loans were entirely a consequence of necessity (bad harvests, fire in a workplace) and, under those conditions, it was considered morally reproachable to charge interest. It was also considered morally dubious, since no goods were produced through the lending of money, and thus it should not be compensated, unlike other activities with direct physical output such as blacksmithing or farming. For
22010-623: The three areas of personal finance, corporate finance, and public finance. These, in turn, overlap and employ various activities and sub-disciplines—chiefly investments , risk management, and quantitative finance . Personal finance refers to the practice of budgeting to ensure enough funds are available to meet basic needs, while ensuring there is only a reasonable level of risk to lose said capital. Personal finance may involve paying for education, financing durable goods such as real estate and cars, buying insurance , investing, and saving for retirement . Personal finance may also involve paying for
22165-649: The urgent request of Pope Stephen, the Frankish king Pepin the Short conquered the Lombards. He then gifted the lands of the former exarchate to the pope, thus initiating the Papal States . Rome and the Byzantine East would delve into further conflict during the Photian schism of the 860s, when Photius criticized the Latin west of adding of the filioque clause after being excommunicated by Nicholas I . Though
22320-446: The use of interest. In Sumerian, "interest" was mas , which translates to "calf". In Greece and Egypt, the words used for interest, tokos and ms respectively, meant "to give birth". In these cultures, interest indicated a valuable increase, and seemed to consider it from the lender's point of view. The Code of Hammurabi (1792–1750 BCE) included laws governing banking operations. The Babylonians were accustomed to charging interest at
22475-635: The various positions held by the institution—both trading positions and long term exposures —and on calculating and monitoring the resultant economic capital , and regulatory capital under Basel III . The calculations here are mathematically sophisticated, and within the domain of quantitative finance as below. Credit risk is inherent in the business of banking, but additionally, these institutions are exposed to counterparty credit risk . Banks typically employ Middle office "Risk Groups" , whereas front office risk teams provide risk "services" (or "solutions") to customers. Additional to diversification ,
22630-620: The war and reunite families. The interwar Pope Pius XI modernized the papacy, appointing 40 indigenous bishops and concluding fifteen concordats, including the Lateran Treaty with Italy which founded the Vatican City State . His successor Pope Pius XII led the Catholic Church through the Second World War and early Cold War . Like his predecessors, Pius XII sought to publicly maintain Vatican neutrality in
22785-582: The world . The pope , who is the bishop of Rome, is the chief pastor of the church. The Diocese of Rome , known as the Holy See , is the central governing authority of the church. The administrative body of the Holy See, the Roman Curia , has its principal offices in Vatican City , which is a small, independent city-state and enclave within the city of Rome , of which the pope is head of state . The core beliefs of Catholicism are found in
22940-478: The world through missions , immigration , diaspora , and conversions . Since the 20th century, the majority have resided in the Global South , partially due to secularization in Europe and North America. The Catholic Church shared communion with the Eastern Orthodox Church until the East–West Schism in 1054, disputing particularly the authority of the pope . Before the Council of Ephesus in AD 431,
23095-487: Was a major factor in preserving classical civilization , with its art (see Illuminated manuscript ) and literacy. Through his Rule , Benedict of Nursia ( c. 480 –543), one of the founders of Western monasticism , exerted an enormous influence on European culture through the appropriation of the monastic spiritual heritage of the early Catholic Church and, with the spread of the Benedictine tradition, through
23250-530: Was at its most intense in Poland , and Catholic resistance to Nazism took various forms. Some 2,579 Catholic clergy were sent to the Priest Barracks of Dachau Concentration Camp , including 400 Germans. Thousands of priests, nuns and brothers were imprisoned, taken to a concentration camp, tortured and murdered, including Saints Maximilian Kolbe and Edith Stein . Catholics fought on both sides in
23405-645: Was burned at the stake for heresy, but his reform efforts encouraged Martin Luther , an Augustinian friar in modern-day Germany, who sent his Ninety-five Theses to several bishops in 1517. His theses protested key points of Catholic doctrine as well as the sale of indulgences , and along with the Leipzig Debate this led to his excommunication in 1521. In Switzerland , Huldrych Zwingli , John Calvin and other Protestant Reformers further criticized Catholic teachings. These challenges developed into
23560-585: Was defined as lending on interest above 1 percent per month (12.7% AER ). Ninth-century ecumenical councils applied this regulation to the laity . Catholic Church opposition to interest hardened in the era of the Scholastics , when even defending it was considered a heresy . St. Thomas Aquinas , the leading theologian of the Catholic Church , argued that the charging of interest is wrong because it amounts to " double charging ", charging for both
23715-464: Was first used to describe the church in the early 2nd century. The first known use of the phrase "the catholic church" ( Greek : καθολικὴ ἐκκλησία , romanized : katholikḕ ekklēsía ) occurred in the letter written about 110 AD from Saint Ignatius of Antioch to the Smyrnaeans , which read: "Wheresoever the bishop shall appear, there let the people be, even as where Jesus may be, there
23870-410: Was largely resolved in 1415–17 at the Council of Constance , with the claimants in Rome and Pisa agreeing to resign and the third claimant excommunicated by the cardinals, who held a new election naming Martin V pope. In 1438, the Council of Florence convened, which featured a strong dialogue focussed on understanding the theological differences between the East and West, with the hope of reuniting
24025-416: Was the first bishop of Rome. Others say that the institution of the papacy is not dependent on the idea that Peter was bishop of Rome or even on his ever having been in Rome. Many scholars hold that a church structure of plural presbyters/bishops persisted in Rome until the mid-2nd century, when the structure of a single bishop and plural presbyters was adopted, and that later writers retrospectively applied
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