The goldsmith's ability to create money was based on the fact that: A) people preferred to use paper money as a medium of exchange. B) the goldsmith was required to keep 100% gold reserves. C) consumers preferred to use gold for transactions. D) withdrawals of gold tended to exceed deposits of gold.

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Business

Jaylon Pitts

31 July, 13:04

The goldsmith's ability to create money was based on the fact that: A) people preferred to use paper money as a medium of exchange. B) the goldsmith was required to keep 100% gold reserves. C) consumers preferred to use gold for transactions. D) withdrawals of gold tended to exceed deposits of gold.

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Answers (1)

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Pasha · Answer 1

The correct answer is A

Explanation:

Goldsmith is a metal worker, who is specializes in dealing or working with the gold and other kind of precious metals. Goldsmiths need to be skilled in forming the metal by soldering, forging, sawing, casting, polishing metal and filing.

The ability of the goldsmith for creating the money, is grounded or based on the fact that the goldsmith preferred to use the paper money in the form of the gold receipts (as a medium of exchange).