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

question 228

Multiple Choice

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

• A) withdrawals of gold tended to exceed deposits of gold in any given time period.
• B) consumers and merchants preferred to use gold for transactions, rather than paper money.
• C) the goldsmith was required to keep 100 percent gold reserves.
• D) paper money in the form of gold receipts was rarely redeemed for gold.

---

Definitions:

Nondefective

Referring to items or products that meet the required quality standards and are free of defects.

Control Charts

Tools used in statistical process control to monitor the consistency of processes over time and identify variances.

Control Limits

Statistical boundaries in a control chart that determine the acceptability range for a process variability, outside of which signals a process is out of control.

P Chart

A type of control chart used for monitoring the proportion of defective items in a process over time, helping in the identification of out-of-control processes.