Barter

What is a Barter System?

• A system where goods and services are exchanged using money.

• A system where goods and services are directly exchanged without money.

• A system where only services are exchanged.

In a Barter System, money is used to exchange goods and services.

• True

• False

In a barter system, a __________ is required, meaning both parties must want what the other is offerin

• cow

• double coincidence of wants
• loan

Which is an advantage of using money in trade?

• It requires both parties to have what the other wants.

• It simplifies transactions by removing the need for a direct exchange.

• It limits the types of goods that can be exchanged.

Requires both parties to have exactly what the other desires.

• Trade using money

• Barter

Uses a medium that can be exchanged for various goods.

• Barter system

• Trade using money