The major contribution of goldsmiths to the development of modern banking was
A)local banking.
B)market banking.
C)fractional reserve banking.
D)gold standard banking.

Question

Quizplus · Accepted Answer

Goldsmiths are credited with developing fractional reserve banking, where they would keep only a portion of their customers' deposits in reserve and lend out the rest, earning interest on the loans. This allowed them to increase their profits, while also providing much-needed credit to their communities. This system eventually evolved into the modern banking system used today.

The Major Contribution of Goldsmiths to the Development of Modern