Barter VS MONEY

1. What is the primary difference between barter and money as methods of exchange?

•  Barter involves indirect exchange, while money involves direct exchange.

• Barter requires a double coincidence of wants, while money is direct exchange.

• Barter is widely accepted, while money is limited in scope.

• Barter is durable, while money is portable.

Which characteristic of money ensures that it can be easily carried and transported?

• Durability

• Divisibility

• Uniformity

• Portability

What function of money allows for transactions to occur over time by serving as a means of settling debts and making future payments?

• Store of value

• Way of deferring payments

• Unit of account

• Medium of exchange

Which of the following is a characteristic of money that ensures its easy recognition and acceptance?

• Divisibility/Broken down into smaller units

• Portability/ Easy to carry

• Durability/Long Lasting

• Uniformity/Homogeneity

 What was a significant development in the history of money during the 20th century?

• Barter system trading began

• Adoption of metallic standards

• Emergence of digital currencies

• Introduction of paper money

Barter requires a double coincidence of wants.

• TRUE

• FALSE

1. Barter involves the use of money.

• TRUE

• FALSE

1. Money should be scarce or limited to maintain its value.

• TRUE

• FALSE

1. The systems of exchange using money requires double coincidence of wants.

• TRUE

• FALSE

2. Money can be divided into smaller units.

• TRUE

• FALSE