When the Receipts Given by Goldsmiths to Depositors Were Used

question 170

Multiple Choice

When the receipts given by goldsmiths to depositors were used to make purchases,

• A) the gold standard was created.
• B) existing banking laws were violated.
• C) the receipts became in effect paper money.
• D) a fractional reserve banking system was created.

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Definitions:

Weighted-Average Method

An inventory costing method that calculates the cost of goods sold and ending inventory based on the average cost of all items available for sale during the period.

First-In, First-Out Methods

An inventory valuation method where the first items produced or purchased are the first ones sold, affecting the cost of goods sold and inventory valuation.

First-In, First-Out Method

An inventory valuation method where the first items placed into inventory are the first ones sold.

Weighted-Average Method

An inventory costing method that calculates the cost of inventory based on the average cost of all similar items in the inventory, considering their weight.