Social Studies, 02.03.2020 17:00 bunbun2913
Which one of the following functions that goldsmiths performed was most important in the development of modern-day fractional reserve banking? Goldsmiths issued paper receipts to people who stored gold in the goldsmiths’ vaults. Goldsmiths stored gold for people in their vaults. The paper receipts issued by the goldsmiths were accepted by merchants as a means of payment. By issuing additional paper receipts, goldsmiths made loans to people who did not necessarily have gold deposits.
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