The Goldsmith's Ability to Create Money Was Based on the Fact

question 177

Multiple Choice

The goldsmith's ability to create money was based on the fact that:

• A)gold receipts were rarely exchanged for gold.
• B)the goldsmith was required to keep 100 percent gold reserves.
• C)consumers preferred to use gold for transactions.
• D)withdrawals of gold tended to exceed deposits of gold.