why do reciept of the goldsmith work as money?
Answers
Answer:
Receipt of the goldsmith worked as money because it was difficult to carry gold everywhere as it could be stolen very easily.
Explanation:
The history of money involves gold. The whole monetary system began through gold. Though gold is just metal it is very valuable. In the history of ours, when gold was the medium of exchange, people were unable to carry it from place to place because it was pretty valuable and they were afraid that it could get stolen. And so goldsmiths began.
It used to have safekeeping services. It used to work exactly how the banking sector works today. And because it was difficult to carry gold everywhere, people started depositing their money to goldsmith where for example, if someone has deposited 20 pieces of gold, then the person would get a receipt saying 20 pieces of gold. And that is how it started working.