Introduction to Barter and Money

What is the barter system?

• Using money for exchange

• Exchanging goods and services without money

• A financial institution

• A modern digital payment system

One major advantage of the barter system is:

• Double coincidence of wants

• Simple transactions

• Standardization of goods

• Easy storage of goods

A major disadvantage of the barter system is:

• Immediate exchange

• Easy transportation of goods

• Double coincidence of wants

• Digital payments

Which of the following is NOT a disadvantage of barter?

• Difficulty in storing goods

• Lack of standardization

• Mutual needs of trading parties

• Double coincidence of wants

The emergence of money was primarily a result of:

• Digital technology

• Barter's limitations

• Growth of international trade

• Government intervention

Which form of money developed after commodity money?

• Metal money

• Barter

• Digital currency

• Cheques

The transition from barter to a money economy involved:

• The creation of cryptocurrency

• Development of paper and metal money

• Complete elimination of barter

• Exclusive use of tele-banking

Which of the following is a function of money?

• Double coincidence of wants

• Unit of account

• Lack of standardization

• Difficulty in storage

Money serves as a:

• Store of value

• Simple transaction method

• Difficult to transport medium

• Non-exchangeable unit

Money eliminates the need for:

• Digital transfers

• Barter systems

• Deferred payments

• Standardization of currency