identify each of the statements regarding goldsmiths and the evolution of banks as either true or false. you are currently in a labeling module. turn off browse mode or quick nav, tab to items, space or enter to pick up, tab to move, space or enter to drop. early traders resisted using deposit receipts from goldsmiths as money until the goldsmiths began to pay a fraction of the gold deposits, to entice depositors to keep gold in reserve with the goldsmith. because what became paper money issued by goldsmiths depended on the amount of gold deposited, goldsmiths could not actually create money. goldsmiths became lending institutions when they realized how unlikely it was that all of the depositors would demand their gold back at any given time. early banks' ability to create money was limited only by the goldsmiths' prudence and judgement. the development of paper money and the banking system was due in large part to convenience. answer bank truemulti-use falsemulti-use