Principles of Business - 3rd Form

The barter system is the exchange of goods and cash.

• True

• False

Double coincidence of wants is an issue associated with the system of

• Barter

• Sale

• Transfer

• Donation

Which of the following is a disadvantage of of the barter system

I Lack of Double Coincidence of Wants

II Lack of Specialization

III Difficulties in storage of value

• I and II only

• III only

• I and III only

• I, II and III

An advantage of Barter is

• you can use money

• more goods can be acquired

• Surplus production can be traded

• it is a quick process of trade

All of the above are characteristics of money EXCEPT

• Medium of exchange

• Durable

• Portability

• Divisibility

Drawer is a person who issue and sign the cheque

• True

• False

Who is payee?

• The person who sign the cheque

• The person who received the cheque

• None from the above

The bank which pays on behalf of the drawer. Who are they?

• Client

• Drawer

• Drawee

The Signature is an important feature of a cheque

• True

• False

Open cheque is

• Can be presented at the bank for cash

• Has no expiration date

• None of the above