Barter system

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

• A. It requires a double coincidence of wants.

• B. It is not durable.

• C. It is not divisible.

• D. It is not portable.

What is the primary functions of money as a "medium of exchange"?

• A. It measures the value of goods and services.

• B.It facilitates trade and commerce.

• C. It stores wealth over time.

• D. It serves as a unit of account.

Which of the following is NOT a characteristic of money?

• A. Divisibility

• B. Portability

• C. Durability

• D. Inflationary

What is the term used to describe the ability of money to hold its value over time?

• A. Liquidity

• B. Store of value

• C. Unit of account

• D. Medium of exchange

Why is money more efficient than the barter system?

• A. It reduces transaction costs.

• B. It eliminates the need for a double coincidence of wants.

• C. It allows for specialization and division of labor.

• D. All of the above

Which of the following is an example of commodity money?

• A. Paper currency

• B. Gold coins

• C. Credit cards

• D. Bank deposits

Gold is easy to transport.

• True

• False

Central banks have no role in regulating the money supply.

• False

• True

The process of exchanging goods and services without using money is called __________.

Money eliminates the need for a __________ of wants.