When the Receipts Given by Goldsmiths to Depositors Were Used

question 170

Multiple Choice

When the receipts given by goldsmiths to depositors were used to make purchases,

• A) the gold standard was created.
• B) existing banking laws were violated.
• C) the receipts became in effect paper money.
• D) a fractional reserve banking system was created.

Understand the importance and components of a business code of ethics.

Comprehend the laws and regulations that govern business activities.

Identify and explain the forces of competition within industries.

Distinguish between business plans and strategic plans and their purposes.

---

Definitions:

Net Cash Flows

The difference between the cash inflows and outflows in a company during a specific period, reflecting the company’s overall liquidity position.

Estimated Cost

An approximation of the cost to complete a project, task, or transaction, made in the absence of full information.

Capital Investment Evaluation

The process of assessing the profitability and risk of proposed investments or projects to make informed decisions about capital allocations.

Strengths and Weaknesses

An analysis or assessment of the positive (strengths) and negative (weaknesses) internal aspects of an organization.