The goldsmith's ability to create money was based on the fact that:

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Howard Costa

Business

13 October, 05:40

The goldsmith's ability to create money was based on the fact that:

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Maci Haney · Answer 1

The goldsmith's ability to create money was based on the fact that: Paper money in the form of gold receipts was rarely redeemed for gold

Because of this phenomenon, our earlier civilization obtains the idea to opened an institution that would transfer the equity from one hand to another which we commonly knew as the Banking System.