Question

Select the correct term for each of the following definitions. Definition Term An interest-earning deposit with a specified maturity date Any good that is widely accepted for purposes of exchange and in the repayment of debt Coins and paper money Which of the following statements about the history of banks are true? Check all that apply. Warehouse receipts, issued by goldsmiths were often used instead of gold itself to make payments. The amount of gold represented by warehouse receipts was less than the actual amount of gold on deposit. Goldsmiths held deposited gold and issued receipts to their customers.

Answer 1

Question Completion with Options:

Money, Currency, Time Deposit

Answer:

1. Terms          Definitions

Time Deposit  An interest-earning deposit with a specified maturity date                                                                      

Money            Any good that is widely accepted for purposes of exchange

                       and in the repayment of debt

Currency        Coins and paper money

2. The statements about the history of banks that are true:

Warehouse receipts, issued by goldsmiths were often used instead of gold itself to make payments.

Goldsmiths held deposited gold and issued receipts to their customers.

Explanation:

Banking evolved with the activities of goldsmiths who warehoused gold brought by customers for safeguarding by issuing them with warehouse receipts.  Before long, the warehouse receipts were used as a means of payment (or exchange).  That is, the warehouse receipts were used as currency, which is the modern-day equivalent of coins and paper money.