Goldsmiths Became Banks When They Began to Hold Fractional Reserves

question 9

True/False

Goldsmiths became banks when they began to hold fractional reserves and make loans.

---

Definitions:

Company Tax Rate

The rate at which a company is taxed on its profits by the government.

Inventories

The total amount of goods available for sale and raw materials available to produce those goods held by a company.

Subsidiary Entity

A company that is controlled by another company, often referred to as the parent company, through ownership of more than half of the subsidiary's voting stock.

Parent Entity

A business that controls one or more subsidiary companies.