Nature of Business Review - CSEC POB

A system of trading where goods are exchanged for other goods is called?

• Double coincidence of wants

• Barter

• Rate of exchange

• Division of labour

Before barter evolved, man’s wants were satisfied through

• A system of hunting and food gathering by families

• A system of exchange of goods and services

• The manufacture of raw materials into finished products

• The purchase of goods for money

Barter may be described as the

• Bargaining for quality goods at cheaper prices

• Credit sale and purchase of goods

• Exchange of goods for goods

• Exchange of goods for money

Which one of the following characterized pre-industrial societies?

• Division of labour was unknown

• Labour intensive methods of production were predominant

• Trade was rigidly restricted

• Modern machines were used in factories

Which one of the following is usually associated with simple societies?

• International trade

• Money economy

• Subsistence cultivation

• Surplus output

Which of the following can be identified as disadvantages of the barter system?

I. Absence of a common measure of value

II. Difficulty of storing wealth

III. Double coincidence of wants

IV. Provision of a wider variety of goods

• I, II and III only

• I and II only

• II and III only

• IV only

In Britain the earliest people who issued paper receipts which could be used as cheques were

• Traders in the market places

• Importers and exporters

• The Princes of England

• The pawnbrokers and goldsmiths

In very primitive economies money took the form of

• Beads, shells and feathers

• Bank drafts and cheques

• Gold, silver and copper coins

• Money and postal orders

Gold was used as a currency in many countries mainly because

• It was a very expensive and precious metal

• It was genuine and acceptable

• It could be mixed into an alloy

• Gold was relatively plentiful in most countries

A number of commodities such as cowrie shells, cattle, salt and sugar were used as money. The type of money is referred to as

• Fiat money

• Representative money

• Near money

• Commodity money