Money & Banking Quiz

The term Barter Can best defined as

• The exchange of one thing for another with money

• The exchange of one thing for another with a cow

• The exchange of one thing for another without money

• The exchange of one thing for another without commodity

One advantage of the Barter system was that

• It improved their way of life

• It allowed divisibility of goods

• It allowed them to get along

• It allowed them to be equal

One disadvantage of Barter was

• An exchange rate

• Allowed them to specialize

• Allowed them be gain wealth

• Disposed of wealth

A storage of wealth in the Barter System meant

• Some items could be stored for a long time

• Some items could not be stored for a long time

• Some items weigh less than others

• Some items were easier to divide

An exchange rate meant

• There had to be an agreement by both parties on what would be exchanged

• There had to be an agreement on the price

• There had to be an agreement on the weight of the item

• There had to be an agreement on the size of the animal

A double coincidence of wants is

• You had to find a partner

• You had to find a team leader to sell the products

• You had to find someone who wanted what you had and vice versa

• You had to find a way to hunt for the things you wanted sometimes

Divisibility of goods meant that some rates of exchange did not make it possible to trade.

• True

• False

Money is anything that is generally accepted for the exchange of goods and services

• True

• False

By saying money must be durable it means

• It must be perishable

• It must not be perishable

• It must not be easily able to find

• It must not be recoverable

By saying money must be acceptable it means

• It should be the best choice

• It should be liked by all

• Everyone should agree to use it

• Everyone should not agree to use it