Why did merchant guilds form in the middle ages?

to serve local churches
to build cathedrals
to eliminate competition between merchants
to protect merchants and their goods?

The correct answer is D) to protect merchants and their goods.

Merchants formed guilds to protect merchants and their goods.

In the Feudalist years, landowners could tax people and trade. But taxes increased considerably and people got very upset with landowners and lords. That is why they formed guilds. Traders associated under the guilds to negotiate with lords the regulation of trade and the taxes. The negotiations between the parts resulted in the Merchant Guild Charter that made Merchants pay a fixed sum on an annual basis.

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