Early Goldsmiths Began to Function as Modern Banks When They

question 6

Multiple Choice

Early goldsmiths began to function as modern banks when they began to operate under a fractional reserve policy and

• A) loaned gold.
• B) issued receipts for gold deposited.
• C) issued deposit receipts to borrowers in return for a note (loan).
• D) when they received a banking charter from the government.
• E) All of the above.

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Definitions:

Taxed

Subjected to a financial charge or levy imposed by a government on income, transactions, or property.

Partnership

A partnership is a legal form of business operation between two or more individuals who share management and profits.

Proprietorship

Proprietorship, also known as sole proprietorship, is a business owned and operated by a single individual, where the owner and the business are legally treated as the same.

Taxed

Describes funds or goods that are subjected to taxation by governmental authorities.