Goldsmiths Were Able to Practice an Early Form of Fractional

question 247

Multiple Choice

Goldsmiths were able to practice an early form of fractional reserve banking because they knew that

• A) people were relatively unsophisticated in their financial transactions.
• B) gold was the major form of money.
• C) not all depositors would claim their gold at the same time.
• D) gold did not serve as a unit of account.

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