When the receipts given by goldsmiths to depositors were used to make purchases, _________
a. the gold standard was created.
b. a fractional reserve banking system was created.
c. existing banking laws were violated.
d. the receipts became in effect paper money.

Money can be defined as something which is accepted as a medium of exchange in the economic transactions involving the exchange of goods and services.

When the receipts given by the Goldsmiths were used to make purchases, they served the medium of exchange function of money.

So these receipts in effect became paper money.

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When the receipts given by goldsmiths to depositors were used to make purchases, _________ a. the gold standard was created. b. a fractional reserve banking system was created. c. existing banking laws were violated. d. the receipts became in effect paper money.

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When the receipts given by goldsmiths to depositors were used to make purchases, _________
a. the gold standard was created.
b. a fractional reserve banking system was created.
c. existing banking laws were violated.
d. the receipts became in effect paper money.