Exploring the Characteristics of Money vs. Barter

What was the primary method of trade in the small village by the river?

• Using money

• Credit system

• Barter system

• Using gold

Why did the farmer refuse to trade wheat for shoes the second time?

• He didn't grow wheat anymore

• Catherine didn't bring shoes

• He already had enough shoes

• He preferred apples

What problem did Catherine face when trying to trade shoes for wheat directly?

• It was raining

• Wheat was scarce

• Shoes were banned

• The farmer didn't need shoes

What does money primarily serve as in an economy?

• A type of barter

• A collectible

• A medium of exchange

• A luxury item

Which property of money ensures it can be used for small transactions?

• Divisibility

• Portability

• Durability

• Homogeneity

Which of the following is NOT a property of money?

• Perishable

• Divisible

• Durable

• Portable

What was a major drawback of using cattle as money?

• Too heavy to carry

• Not divisible

• All of the above

• Easily perishable

Why did gold become a preferred medium of exchange over items like salt or cattle?

• It was more colorful

• Easier to find

• Less valuable

• Better properties for money

What characteristic of gold ensures it does not lose value over time?

• It is shiny

• Limited quantity

• It is heavy

• Widely available

Why did the world move away from the gold standard?

• Gold was too heavy

• Gold lost its value

• Too difficult to mine

• Economic changes