Practice LT2.3 #2 - Barter and Currency

True or False: The barter system is the exchange of goods and cash.

• True
• False

True or False: An item that is a good currency must be portable, durable and widely accepted as payment by others.

• True
• False

What is a Medium of Exchange?

• The amount of currency exchanged to as equal value of currency from another country
• The amount of gold or silver a printed paper note is worth.
• Money or other items generally accepted as payment for goods and services.

What is currency? (coins and paper bills)

(a)  

Which type of trade system is better when traveling to other civilizations for goods and services?

• Barter System
• Currency System

All of the following are characteristics (features) of barter EXCEPT

• Double Coincidence of wants- each person must have what the other wants to trade for.
• To be successful at bartering you must have a lot of wealth (money)
• Goods and services are exchanged directly for other goods and services
• Making a successful trade for something you need can be time consuming

Which of the following is a good?

• Paying for a taxi ride
• Subscription for your favorite magazine
• Tutoring after school

Which of the following is an example of bartering

• Getting your lawn mowed because you watched your neighbors dog for a week
• Teaching a younger kid to ride a bike
• Buying a new pair of shoes to replace ones that are too small

BONUS: You are helping to develop a new civilization, which trade system bartering or currency would you suggest? Support your response.