Multiple Choice
The fractional reserve system of banking evolved because
A) goldsmiths did not have safes large enough to hold all their gold deposits.
B) there was always a dire need for additional money.
C) goldsmiths knew that on any given day, only a few depositors would come to claim their deposits.
D) goldsmiths knew that they would not be prosecuted for lending out money they did not have.
Correct Answer:
Verified
Correct Answer:
Verified
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