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:

Proprietorship

A form of business organization owned by a single person who is responsible for its operations and entitled to its profits.

Barber Shop

A place of business that offers men hair cutting, grooming, and often, shaving services.

External User

Individuals or entities outside of a company who have an interest in the company's financial information, such as investors, creditors, or regulators.

Accounting Data

Information related to the financial transactions and status of an organization, used to prepare financial statements.