Final answer:
The inception of banking systems benefitted merchants by facilitating easier transactions, allowing secure storage, and access to funds, as well as connecting savers with borrowers in the economy.
Step-by-step explanation:
The start of a banking system had a significant positive economic impact on merchants by streamlining transactions and reducing the need to carry large sums of cash. Through services like checking and savings accounts, merchants could safely store funds and easily access them via direct withdrawals, checks, or debit cards. Furthermore, the interrelation of money, loans, and banks allowed for a smoother operation of the economy, connecting savers with borrowers and facilitating exchanges in goods and labor markets.
Money and banks are essential in a modern economy, making market exchanges more efficient compared to barter and enabling the creation of money through the banking system when loans are made. An efficient banking system alleviates the risks associated with having to maintain large quantities of cash, especially pertinent for merchants who handle sizeable transactions and need secure methods to pay for labor and supplies.