Which of the following describes the "invention" of banking?
A)The British Empire created a banking system to fund its exploration of the New World.
B)Members of the New York Stock Exchange founded the Bank of America in the 1700s.
C)Goldsmiths in the sixteenth century issued gold receipts which entitled its owners to reclaim their gold on demand.
D)Clergy in the Renaissance created the banking system to help further the growth of the church.
E)The United States government founded the Federal Reserve in 1913.

Question

Quizplus · Accepted Answer

Goldsmiths in the sixteenth century began issuing paper receipts that could be redeemed for their customers' stored gold, essentially creating a system of banking. This allowed people to keep their gold in a safe place and use the receipts as a sort of currency, leading to the development of modern banking systems. None of the other options provided accurately describe the invention of banking.

Which of the Following Describes the "Invention" of Banking