Question

Wealthy merchants created towns out of old feudal manors.

Answer 1

The feudal system was a hierarchical system in which the obligations were accurately determined, and controlled.  With the increasing needs of agriculture, crops, livestock, technical means for improving agriculture, there is a class of traders who could offer their goods because of higher demand. Capable and skilled traders invested in their commercial business, gradually becoming richer. At the same time, bankers with their loans, craftsmen appeared, starting to form cities with their shops, offices, warehouses, banks.

Your statement is true.