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.

Question

Quizplus · Accepted Answer

Early goldsmiths began to function as modern banks when they issued deposit receipts to borrowers in return for a note (loan), effectively creating money through the fractional reserve system.

Early Goldsmiths Began to Function as Modern Banks When They