Question

The most direct way in which money replaces barter is through its use as a A....

The most direct way in which money replaces barter is through its use as a
A. medium of exchange
B. recording device
C. store of value
D. unit of account

Business   Economics   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

A) medium of exchange

Earlier, where the barater system used to run, goods were exchanged through each other's exchange and each other's needs were met.

But the main drawback of the barter system was that the exchange commodity of that item at the same time was also a coincidence and some time it create problem as coincidence not meet.

The arrival of currency in the form of exchange medium eliminates the problem of this coincidence and commodities are bought and sold independently.

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
QUESTION 7 Money is any commodity or token that is issued by the government. generally accepted...
QUESTION 7 Money is any commodity or token that is issued by the government. generally accepted as a means of payment. generally accepted as a means of measurement. a store of value. 2 points    QUESTION 8 The functions of money are medium of exchange, unit of account, and store of value. medium of exchange, the ability to buy goods and services, and checking accounts. medium of exchange, the ability to buy goods and services, and the ability to pay...
QUESTION 10 Commodity money has value independent of its use as money. has little to no...
QUESTION 10 Commodity money has value independent of its use as money. has little to no value independent of its use as money. is backed by a valuable commodity such as gold. can be used to purchase commodities, but not services. 2 points    QUESTION 11 If whole tomatoes were money, which of the following functions of money would be the hardest for tomatoes to satisfy? unit of account certificate of gold medium of exchange store of value 2 points...
When we speak of money's advantage over barter trade, we are primarily speaking of         money's...
When we speak of money's advantage over barter trade, we are primarily speaking of         money's function as:             a. a medium of exchange             b. a unit of account             c. a store of value             d. a standard of deferred payment ( I originally choose option C, but I was wrong)
Indicate which of the functions of money (a medium of exchange, a unit of account, and...
Indicate which of the functions of money (a medium of exchange, a unit of account, and a store of value) each of the following performs in the U.S. economy. Check all that apply. Medium of Exchange Unit of Account Store of Value Plastic credit card House Mexican peso Demand deposit Given your answers to the previous task, indicate whether each of the following is considered money in the U.S. economy. Money Yes No Plastic credit card House Mexican peso Demand...
1) MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question....
1) MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question. 1) Because money eliminates the "double coincidence of wants" problem, the development of money as a ________ has facilitated the expansion of trade. 1) _______ A) unit of account B) medium of exchange C) store of value D) measure of value 2) When you keep your savings in a safety deposit box, you are using money as a(n) 2) _______ A) unit of account....
Please answer all questions, thanks. 1. The advantage of money as a store of value is...
Please answer all questions, thanks. 1. The advantage of money as a store of value is that: A. It is the only asset that never loses its value. B. Its value does not diminish as inflation accelerates. C. Its value is guaranteed by the government. D. It provides investors with a high return. E. It provides the convenience of being already in the form that it can be used as a medium of exchange. 2. When money allows us to...
Consider a fiat money/barter system like that portrayed in this chapter. Suppose the number of goods...
Consider a fiat money/barter system like that portrayed in this chapter. Suppose the number of goods is 100, i.e., J = 100. Each search for a trading partner costs a person 2 units of utility, i.e., α = 2. (a) What is the probability that a given random encounter between people of separate islands will result in a successful barter? (b) What are the average lifetime search costs for a person who relies strictly on barter? (c) What are the...
Money has several roles. Which role is the demand for money based on? a. primarily on...
Money has several roles. Which role is the demand for money based on? a. primarily on money’s role as a store of wealth b. primarily on money’s role as a standard of value c. primarily on money’s role as an interest-bearing asset d. primarily on money’s role as a medium of exchange
Of money's three functions, the one that allows us to make intertemporal consumption choices is its...
Of money's three functions, the one that allows us to make intertemporal consumption choices is its function as a A) medium of exchange                B) unit of account.           C) standard of deferred payment         D) store of value.
Austin purchases a truck for $25,000 using funds borrowed from Chase bank. In exchange, Austin will...
Austin purchases a truck for $25,000 using funds borrowed from Chase bank. In exchange, Austin will pay $450 per month until the loan is paid off. This is an example of money functioning as a A. store of value B. standard of deferred payment C. Medium of exchange D. Unit of account
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT