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When a company generates a profit and accumulates retained earnings, those earnings can be either reinvested in the business or paid out to shareholders as a dividend. The use of coins as a means of representing money began in the years between 600 and 570 BCE. Cities under the Greek empire, such as Aegina , Athens and Corinth , started to mint their own coins. In the Roman Republic, interest was outlawed altogether by the Lex Genucia reforms. Under Julius Caesar, a ceiling on interest rates of 12% was set, and later under Justinian it was lowered even further to between 4% and 8%. Dōjima Rice Exchange, the world's first futures exchange, established in Osaka in 1697. How Do Financial Constraints Affect Product Pricing? Evidence From Weather And Life Insurance Premiums The federal government helps prevent market failure by overseeing the allocation of resources, the distribution of income, and economic stability. Borrowing from banks, insurance companies, and other nations als...