Arabic is a Central Semitic language that was first spoken in Iron Age northwestern Arabia and is now the lingua franca of the Arab world. Arabic is the language of 1.7 billion Muslims. It is one of six languages of the United Nations. The modern written language is derived from the language of the Quran and it is widely taught in schools and universities, and is used to varying degrees in workplaces and the media. The two formal varieties are grouped together as Literary Arabic, which is the language of 26 states. Modern Standard Arabic largely follows the standards of Quranic Arabic. Much of the new vocabulary is used to denote concepts that have arisen in the post-Quranic era, Arabic has influenced many languages around the globe throughout its history. During the Middle Ages, Literary Arabic was a vehicle of culture in Europe, especially in science, mathematics. As a result, many European languages have borrowed many words from it. Many words of Arabic origin are found in ancient languages like Latin.
Balkan languages, including Greek, have acquired a significant number of Arabic words through contact with Ottoman Turkish. Arabic has borrowed words from languages including Greek and Persian in medieval times. Arabic is a Central Semitic language, closely related to the Northwest Semitic languages, the Ancient South Arabian languages, the Semitic languages changed a great deal between Proto-Semitic and the establishment of the Central Semitic languages, particularly in grammar. Innovations of the Central Semitic languages—all maintained in Arabic—include, The conversion of the suffix-conjugated stative formation into a past tense, the conversion of the prefix-conjugated preterite-tense formation into a present tense. The elimination of other prefix-conjugated mood/aspect forms in favor of new moods formed by endings attached to the prefix-conjugation forms, the development of an internal passive. These features are evidence of descent from a hypothetical ancestor. In the southwest, various Central Semitic languages both belonging to and outside of the Ancient South Arabian family were spoken and it is believed that the ancestors of the Modern South Arabian languages were spoken in southern Arabia at this time.
To the north, in the oases of northern Hijaz and Taymanitic held some prestige as inscriptional languages, in Najd and parts of western Arabia, a language known to scholars as Thamudic C is attested
The Islamic, Muslim, or Hijri calendar is a lunar calendar consisting of 12 months in a year of 354 or 355 days. It is used to date events in many Muslim countries and it is used by Muslims to determine the proper days of Islamic holidays and rituals, such as the annual period of fasting and the proper time for the pilgrimage to Mecca. The Islamic calendar employs the Hijri era whose epoch was retrospectively established as the Islamic New Year of AD622, during that year and his followers migrated from Mecca to Yathrib and established the first Muslim community, an event commemorated as the Hijra. In the West, dates in this era are usually denoted AH in parallel with the Christian, in Muslim countries, it is sometimes denoted as H from its Arabic form. In English, years prior to the Hijra are reckoned as BH, the current Islamic year is 1438 AH. In the Gregorian calendar,1438 AH runs from approximately 3 October 2016 to 21 September 2017, four of the twelve Hijri months are considered sacred and the three consecutive months of Dhū al-Qa‘dah, Dhu al-Ḥijjah and Muḥarram.
As the lunar calendar lags behind the solar calendar by about ten days every gregorian year, the cycle repeats every 33 lunar years. Each month of the Islamic calendar commences on the birth of the new lunar cycle, traditionally this is based on actual observation of the crescent marking the end of the previous lunar cycle and hence the previous month, thereby beginning the new month. Consequently, each month can have 29 or 30 days depending on the visibility of the moon, astronomical positioning of the earth and weather conditions. However, certain sects and groups, most notably Dawoodi Bohra Muslims and Shia Ismaili Muslims, use a tabular Islamic calendar in which odd-numbered months have thirty days, in Arabic, the first day of the week corresponds with Sunday of the planetary week. The Islamic weekdays, like those in the Hebrew and Baháí calendars, the Christian liturgical day, kept in monasteries, begins with vespers, which is evening, in line with the other Abrahamic traditions. Christian and planetary weekdays begin at the following midnight, Muslims gather for worship at a mosque at noon on gathering day which corresponds with Friday.
Thus gathering day is regarded as the weekly day of rest. A few others have adopted the Saturday-Sunday weekend while making Friday a working day with a midday break to allow time off for worship. Inscriptions of the ancient South Arabian calendars reveal the use of a number of local calendars, at least some of these calendars followed the lunisolar system. For Central Arabia, especially Mecca, there is a lack of epigraphical evidence, both al-Biruni and al-Masudi suggest that the Ancient Arabs used the same month names as the Muslims, though they record other month names used by the pre-Islamic Arabs. Nevertheless, the Islamic position equating Nisan with Dhū al-Ḥijja has prevailed, for a comparison between the Islamic and pre-Islamic months, see Islamic and Jahili months. The Islamic tradition is unanimous in stating that Arabs of Tihamah, the forbidden months were four months during which fighting is forbidden, listed as Rajab and the three months around the pilgrimage season, Dhu al-Qa‘dah, Dhu al-Hijjah, and Muharram
French colonial empire
The French colonial empire constituted the overseas colonies and mandate territories that came under French rule from the 16th century onward. The second empire came to an end after the loss of bitter wars in Vietnam and Algeria, competing with Spain, the United Provinces, and Britain, France began to establish colonies in North America, the Caribbean, and India in the 17th century. A series of wars with Great Britain and other European major powers during the 18th century, France rebuilt a new empire mostly after 1850, concentrating chiefly in Africa, as well as Indochina and the South Pacific. Republicans, at first hostile to empire, only became supportive when Germany started to build her own colonial empire and it provided manpower in the World Wars. It became a mission to lift the world up to French standards by bringing Christianity. In 1884 the leading proponent of colonialism, Jules Ferry declared, The higher races have a right over the lower races, full citizenship rights – assimilation – were offered, although in reality assimilation was always receding the colonial populations treated like subjects not citizens.
At its apex, it was one of the largest empires in history, including metropolitan France, the total amount of land under French sovereignty reached 11,500,000 km2 in 1920, with a population of 110 million people in 1939. In World War II, Charles de Gaulle and the Free French used the colonies as bases from which they fought to liberate France. However, after 1945 anti-colonial movements began to challenge European authority, the French constitution of October 27,1946, established the French Union which endured until 1958. Newer remnants of the empire were integrated into France as overseas departments. These now total altogether 119,394 km², which amounts to only 1% of the pre-1939 French colonial empires area, by the 1970s, says Robert Aldrich, the last vestiges of empire held little interest for the French. He argues, Except for the decolonization of Algeria, however. During the 16th century, the French colonization of the Americas began, the story of Frances colonial empire truly began on 27 July 1605, with the foundation of Port Royal in the colony of Acadia in North America, in what is now Nova Scotia, Canada.
A few years later, in 1608, Samuel De Champlain founded Quebec, which was to become the capital of the enormous, New France had a rather small population, which resulted from more emphasis being placed on the fur trade rather than agricultural settlements. Due to this emphasis, the French relied heavily on creating friendly contacts with the local First Nations community and these became the most enduring alliances between the French and the First Nation community. The French were, under pressure from religious orders to them to Catholicism. Through alliances with various Native American tribes, the French were able to exert a loose control over much of the North American continent, areas of French settlement were generally limited to the St. Lawrence River Valley. Prior to the establishment of the 1663 Sovereign Council, the territories of New France were developed as mercantile colonies
A mint is an industrial facility which manufactures coins that can be used in currency. The history of mints correlates closely with the history of coins, in the beginning, hammered coinage or cast coinage were the chief means of coin minting, with resulting production runs numbering as little as the hundreds or thousands. In modern mints, coin dies are manufactured in large numbers, with the mass production of currency, the production cost is weighed when minting coins. For example, it costs the United States Mint much less than 25 cents to make a quarter, metals were well suited to represent wealth, owing to their great intrinsic value and their durability and rarity. The first mint was established in Lydia in the 7th century BC, for coining gold, silver. The Lydian innovation of manufacturing coins under the authority of the spread to neighboring Greece. Some of the earliest Greek mints were within city-states on Greek islands such as Crete, at about the same time and mints appeared independently in China and spread to Korea and Japan.
The manufacture of coins in the Roman Empire, dating from about the 4th century BC, the origin of the word mint is ascribed to the manufacture of silver coin at Rome in 269 BC at the temple of Juno Moneta. This goddess became the personification of money, and her name was applied both to money and to its place of manufacture, Roman mints were spread widely across the Empire, and were sometimes used for propaganda purposes. The populace often learned of a new Roman Emperor when coins appeared with the new Emperors portrait, Ancient coins were made by casting in moulds or by striking between engraved dies. The Romans cast their larger copper coins in clay moulds carrying distinctive markings, not because they knew nothing of striking, casting is now used only by counterfeiters. The most ancient coins were cast in bulletshaped or conical moulds, the blank or unmarked piece of metal was placed on a small anvil, and the die was held in position with tongs. The reverse or lower side of the received a rectangular mark made by the sharp edges of the little anvil.
Subsequently the anvil was marked in ways, and decorated with letters and figures of beasts. The spherical blanks soon gave place to lenticular-shaped ones, the blank was made red-hot and struck between cold dies. One blow was usually insufficient, and the method was similar to that used in striking medals in high relief. With the substitution of iron for bronze as the material for dies, about 300 AD, in the Middle Ages bars of metal were cast and hammered out on an anvil. Portions of the sheets were cut out with shears
European Central Bank
The European Central Bank is the central bank for the euro and administers monetary policy of the eurozone, which consists of 19 EU member states and is one of the largest currency areas in the world. It is one of the worlds most important central banks and is one of the seven institutions of the European Union listed in the Treaty on European Union, the capital stock of the bank is owned by the central banks of all 28 EU member states. The Treaty of Amsterdam established the bank in 1998, and it is headquartered in Frankfurt, Germany. As of 2015 the President of the ECB is Mario Draghi, former governor of the Bank of Italy, former member of the World Bank, the bank primarily occupied the Eurotower prior to, and during, the construction of the new headquarters. The primary objective of the ECB, mandated in Article 2 of the Statute of the ECB, is to price stability within the Eurozone. The ECB has, under Article 16 of its Statute, the right to authorise the issuance of euro banknotes. Member states can issue euro coins, but the amount must be authorised by the ECB beforehand, the ECB is governed by European law directly, but its set-up resembles that of a corporation in the sense that the ECB has shareholders and stock capital.
Its capital is €11 billion held by the central banks of the member states as shareholders. The initial capital allocation key was determined in 1998 on the basis of the population and GDP. Shares in the ECB are not transferable and cannot be used as collateral, the European Central Bank is the de facto successor of the European Monetary Institute. The EMI itself took over from the earlier European Monetary Co-operation Fund, the bank was the final institution needed for EMU, as outlined by the EMU reports of Pierre Werner and President Jacques Delors. It was established on 1 June 1998, the first President of the Bank was Wim Duisenberg, the former president of the Dutch central bank and the European Monetary Institute. The French argued that since the ECB was to be located in Germany and this was opposed by the German and Belgian governments who saw Duisenberg as a guarantor of a strong euro. Tensions were abated by an agreement in which Duisenberg would stand down before the end of his mandate.
Trichet replaced Duisenberg as President in November 2003, there had been tension over the ECBs Executive Board, with the United Kingdom demanding a seat even though it had not joined the Single Currency. Under pressure from France, three seats were assigned to the largest members, France and Italy, Spain demanded and obtained a seat. Despite such a system of appointment the board asserted its independence early on in resisting calls for interest rates, when the ECB was created, it covered a Eurozone of eleven members. On 1 December 2009, the Treaty of Lisbon entered into force, ECB according to the article 13 of TEU, on 1 November 2011, Mario Draghi replaced Jean-Claude Trichet as President of the ECB
Madagascar, officially the Republic of Madagascar, and previously known as the Malagasy Republic, is an island country in the Indian Ocean, off the coast of Southeast Africa. The nation comprises the island of Madagascar, and numerous smaller peripheral islands, Madagascar is a biodiversity hotspot, over 90% of its wildlife is found nowhere else on Earth. The islands diverse ecosystems and unique wildlife are threatened by the encroachment of the growing human population. The first archaeological evidence for human foraging on Madagascar dates to 2000 BC, human settlement of Madagascar occurred between 350 BC and AD550 by Austronesian peoples arriving on outrigger canoes from Borneo. These were joined around AD1000 by Bantu migrants crossing the Mozambique Channel from East Africa, other groups continued to settle on Madagascar over time, each one making lasting contributions to Malagasy cultural life. The Malagasy ethnic group is divided into 18 or more sub-groups of which the largest are the Merina of the central highlands.
Until the late 18th century, the island of Madagascar was ruled by an assortment of shifting sociopolitical alliances. Beginning in the early 19th century, most of the island was united and ruled as the Kingdom of Madagascar by a series of Merina nobles, the monarchy collapsed in 1897 when the island was absorbed into the French colonial empire, from which the island gained independence in 1960. The autonomous state of Madagascar has since undergone four major constitutional periods, since 1992, the nation has officially been governed as a constitutional democracy from its capital at Antananarivo. However, in an uprising in 2009, president Marc Ravalomanana was made to resign. Constitutional governance was restored in January 2014, when Hery Rajaonarimampianina was named president following a 2013 election deemed fair, Madagascar is a member of the United Nations, the Organisation Internationale de la Francophonie and the Southern African Development Community. Madagascar belongs to the group of least developed countries, according to the United Nations and French are both official languages of the state.
The majority of the population adheres to traditional beliefs, Christianity and agriculture, paired with greater investments in education and private enterprise, are key elements of Madagascars development strategy. As of 2017, the economy has been weakened by the 2009-2013 political crisis, in the Malagasy language, the island of Madagascar is called Madagasikara and its people are referred to as Malagasy. The islands appellation Madagascar is not of origin, but rather was popularized in the Middle Ages by Europeans. On St. Laurences Day in 1500, Portuguese explorer Diogo Dias landed on the island, polos name was preferred and popularized on Renaissance maps. At 592,800 square kilometres, Madagascar is the worlds 47th largest country, the country lies mostly between latitudes 12°S and 26°S, and longitudes 43°E and 51°E. Neighboring islands include the French territory of Réunion and the country of Mauritius to the east, as well as the state of Comoros, the nearest mainland state is Mozambique, located to the west
A central bank, reserve bank, or monetary authority is an institution that manages a states currency, money supply, and interest rates. Central banks usually oversee the commercial banking system of their respective countries, Central banks in most developed nations are institutionally designed to be independent from political interference. Still, limited control by the executive and legislative bodies usually exists, prior to the 17th century most money was commodity money, typically gold or silver. However, promises to pay were widely circulated and accepted as value at least five hundred years earlier in both Europe and Asia. The Song dynasty was the first to issue generally circulating paper currency, in 1455, in an effort to control inflation, the succeeding Ming Dynasty ended the use of paper money and closed much of Chinese trade. The Bank of Amsterdam, established in the Dutch Republic in 1609, is considered to be the forerunner to modern central banks. The Wisselbanks innovations helped lay the foundations for the birth and development of the banking system that now plays a vital role in the worlds economy.
Along with a number of local banks, it performed many functions of a central banking system. Lucien Gillard calls it the European guilder, and Adam Smith devotes many pages to explaining how the bank guilder works, the model of the Wisselbank as a state bank was adapted throughout Europe, including the Bank of Sweden and the Bank of England. Established by Dutch-Latvian Johan Palmstruch in 1668, Sveriges Riksbank is often considered by many as the worlds oldest central bank, the lenders would give the government cash and issue notes against the government bonds, which could be lent again. A Royal Charter was granted on 27 July through the passage of the Tonnage Act 1694, the bank was given exclusive possession of the governments balances, and was the only limited-liability corporation allowed to issue banknotes. The £1. 2M was raised in 12 days, half of this was used to rebuild the Navy and these modern central banking functions evolved slowly through the 18th and 19th centuries. The currency crisis of 1797, caused by panicked depositors withdrawing from the Bank led to the government suspending convertibility of notes into specie payment.
The bank was accused by the bullionists of causing the exchange rate to fall from over issuing banknotes. Nevertheless, it was clear that the Bank was being treated as an organ of the state, henry Thornton, a merchant banker and monetary theorist has been described as the father of the modern central bank. An opponent of the real bills doctrine, he was a defender of the bullionist position, thorntons process of monetary expansion anticipated the theories of Knut Wicksell regarding the cumulative process which restates the Quantity Theory in a theoretically coherent form. Until the mid-nineteenth century, commercial banks were able to issue their own banknotes, many consider the origins of the central bank to lie with the passage of the Bank Charter Act of 1844. Under this law, authorisation to issue new banknotes was restricted to the Bank of England, at the same time, the Bank of England was restricted to issue new banknotes only if they were 100% backed by gold or up to £14 million in government debt
The franc, commonly distinguished as the French franc, was a currency of France. Between 1450 and 1999, it was the name of coins worth 1 livre tournois and it was revalued in 1960, with each new franc being worth 100 old francs. The French franc was a commonly held reserve currency of reference in the 19th and 20th centuries. The first franc was a gold coin introduced in 1360 to pay the Ransom of King John II of France and this coin secured the kings freedom and showed him on a richly decorated horse earning it the name franc à cheval. The obverse legend, like other French coins, gives the title as Francorum Rex. Its value was set as one livre tournois, john’s son, Charles V, continued this type. It was copied exactly at Brabant and Cambrai and, with the arms on the horse cloth changed, conquests led by Joan of Arc allowed Charles VII to return to sound coinage and he revived the franc à cheval. John II, was not able to strike enough francs to pay his ransom, John II died as a prisoner in England and his son, Charles V was left to pick up the pieces.
Charles V pursued a policy of reform, including stable coinage, an edict dated 20 April 1365 established the centerpiece of this policy, a gold coin officially called the denier d’or aux fleurs de lis which had a standing figure of the king on its obverse. Its value in money of account was one livre tournois, just like the franc à cheval, in accordance with the theories of the mathematician and royal advisor Nicolas Oresme, Charles struck fewer coins of better gold than his predecessors. In the accompanying deflation both prices and wages fell, but wages fell faster and debtors had to settle up in better money than they had borrowed, the Mayor of Paris, Etienne Marcel, exploited their discontent to lead a revolt which forced Charles V out of the city. The States General which met at Blois in 1577 added to the pressure to stop currency manipulation. Henry III agreed to do this and he revived the franc and this coin and its fractions circulated until 1641 when Louis XIII of France replaced it with the silver Écu.
Nevertheless, the franc continued in accounting as a synonym for the livre tournois. The decimal franc was established as the currency by the French Revolutionary Convention in 1795 as a decimal unit of 4.5 g of fine silver. This was slightly less than the livre of 4.505 g, silver coins now had their denomination clearly marked as “5 FRANCS” and it was made obligatory to quote prices in francs. e. Coinage with explicit denominations in decimal fractions of the franc began in 1795, decimalization of the franc was mandated by an act of 7 April 1795, which dealt with of weights and measures. France’s first decimal coinage used allegorical figures symbolizing revolutionary principles, like the designs the United States had adopted in 1793
France, officially the French Republic, is a country with territory in western Europe and several overseas regions and territories. The European, or metropolitan, area of France extends from the Mediterranean Sea to the English Channel and the North Sea, Overseas France include French Guiana on the South American continent and several island territories in the Atlantic and Indian oceans. France spans 643,801 square kilometres and had a population of almost 67 million people as of January 2017. It is a unitary republic with the capital in Paris. Other major urban centres include Marseille, Lille, Toulouse, during the Iron Age, what is now metropolitan France was inhabited by the Gauls, a Celtic people. The area was annexed in 51 BC by Rome, which held Gaul until 486, France emerged as a major European power in the Late Middle Ages, with its victory in the Hundred Years War strengthening state-building and political centralisation. During the Renaissance, French culture flourished and a colonial empire was established.
The 16th century was dominated by civil wars between Catholics and Protestants. France became Europes dominant cultural and military power under Louis XIV, in the 19th century Napoleon took power and established the First French Empire, whose subsequent Napoleonic Wars shaped the course of continental Europe. Following the collapse of the Empire, France endured a succession of governments culminating with the establishment of the French Third Republic in 1870. Following liberation in 1944, a Fourth Republic was established and dissolved in the course of the Algerian War, the Fifth Republic, led by Charles de Gaulle, was formed in 1958 and remains to this day. Algeria and nearly all the colonies became independent in the 1960s with minimal controversy and typically retained close economic. France has long been a centre of art, science. It hosts Europes fourth-largest number of cultural UNESCO World Heritage Sites and receives around 83 million foreign tourists annually, France is a developed country with the worlds sixth-largest economy by nominal GDP and ninth-largest by purchasing power parity.
In terms of household wealth, it ranks fourth in the world. France performs well in international rankings of education, health care, life expectancy, France remains a great power in the world, being one of the five permanent members of the United Nations Security Council with the power to veto and an official nuclear-weapon state. It is a member state of the European Union and the Eurozone. It is a member of the Group of 7, North Atlantic Treaty Organization, Organisation for Economic Co-operation and Development, the World Trade Organization, originally applied to the whole Frankish Empire, the name France comes from the Latin Francia, or country of the Franks
Moroni is the largest city, federal capital and seat of the government of the Union of the Comoros, a sovereign archipelago nation in the Indian Ocean. In Comorian, Moroni translates as in the heart of the fire, perhaps alluding to the location at the foot of Mount Karthala. Moroni is the capital of the semi-autonomous island Grande Comore, the largest of the three islands of the republic. The citys estimated population in 2003 was 41,557 residents, which lies along the Route Nationale 1, has a port and several mosques such as the Badjanani Mosque. Moroni was founded by Arab settlers, possibly during the 10th century, in December 2003, the Moroni Agreement on Transition Agreements was signed by the island presidents of the Union of Comoros. In the run up to the 2006 elections, the government-owned Radio Ngazidja and private station Moroni FM were raided by armed assailants, the city is on the western coast of Grande Comore island. Moroni has a rocky coastline, mostly without beaches. A small beach north of town at Itsandra contains the ruins of the Sultans Fort and Palace, settlements to the north of Moroni include Ntsoudjini, Bahani, Batsa and Vanadjou, and to the south are Mvouni and Selea.
Moroni is situated at the foot of Mount Karthala,10 kilometres northwest from the volcanos crater, the eruption of 2005 caused displacement of a large number of people due to volcanic ash. Moroni features a tropical rainforest climate, with heavy precipitation throughout the year—only October sees on average less than 100 mm of rain. The average annual rainfall is 2,700 millimetres and it rains during all months of the year, the monsoon season lasts from November to April. Humidity is in the range of 69 to 79 percent, moronis average temperatures throughout the year are relatively constant with a high in the range of 32–34 °C and a low in the range of 14–20 °C. As of 2011, Moroni had a population of about 54,000, sunni Muslims account for 98%, and there is a minority of Roman Catholics. Arabic and French are the official languages while Comorian, which is a Bantu language closely related to Swahili and heavily influenced by Arabic, is spoken. Goods produced on the island are vanilla, coffee, soft drinks and distilled essential oils and wood products, and processed pozzolana, the tourist infrastructure is poorly developed.
Financial institutions include Banque Centrale des Comores, Banque de Development des Comores, towards the south of Moroni are several markets, including the old market and the Dubai Market. The historic town centre, the Medina, contains a maze of narrow alleys, the old city centre is based on Zanzibars Stone Town, but is smaller. There are many mosques, notably the Badjanani Mosque pr Ancienne Mosquée de Vendredi and it was originally built in 1427, and a minaret was added in 1921
Interest is payment from a borrower or deposit-taking financial institution to a lender or depositor of an amount above repayment of the principal sum. It is distinct from a fee which the borrower may pay the lender or some third party, in 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, the rate of interest is equal to the interest amount paid or received over a particular period divided by the principal sum borrowed or lent. 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 is most often calculated on a daily, monthly, or yearly basis, according to historian Paul Johnson, the lending of food money was commonplace in Middle Eastern civilizations as early as 5000 BC.
The argument that acquired seeds and animals could reproduce themselves was used to justify interest, 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 was defined as lending on interest above 1 percent per month, ninth century ecumenical councils applied this regulation to the laity. Catholic Church opposition to interest hardened in the era of scholastics, in the medieval economy, loans were entirely a consequence of necessity and, under those conditions, it was considered morally reproachable to charge interest. For the same reason, interest has often been looked down upon in Islamic civilization, 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, 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 supply was made by the Banque de France in 1847. The latter half of the 20th century saw the rise of interest-free Islamic banking and finance, a movement that applies Islamic law to financial institutions, some countries, including Iran and Pakistan, have taken steps to eradicate interest from their financial systems. All financial transactions must be asset-backed and it does not charge any interest or fee for the service of lending, in economics, the rate of interest is the price of credit, and it plays the role of the cost of capital. Over centuries, various schools of thought have developed explanations of interest and interest rates, the School of Salamanca justified paying interest in terms of 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, 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, for the land value to remain positive and finite keeps the interest rate above zero. Adam Smith, Carl Menger, and Frédéric Bastiat propounded theories of interest rates, in the 1930s, Wicksells 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, simple interest is calculated only on the principal amount, or on that portion of the principal amount that remains