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Which of the following involves the direct exchange of goods and services without the use of money as a medium

Which of the following involves the direct exchange of goods and services without the use of money as a medium of exchange? A. A government-planned system B. A free-market system C. A barter system D. A fractional reserve banking system I'm not sure is it B?

Public Comments

  1. Actually, it's C. That's what barter means. The other options all use money of some sort.
  2. "Barter" means to trade one item/service for another - a solid, even trade. It involves only the goods/services exchanged; no money. Examples: a) You exchange one baseball card for another, b) you exchange 3 goats for 1 cow, c) you exchange dental service for landscaping service. Even steven. No money. The answer is C.
  3. It is "C" The Barter system is an economic system in which two parties trade certain goods or services that each needs to survive.Bartering benefits companies and countries that see a mutual benefit in exchanging goods and services rather than cash, and it also enables those who are lacking "hard currency" to obtain goods and services. An example of a barter arrangement would be if someone built a fence for a cattle farmer in exchange for food. Rather than the farmer paying the builder, say, $1,000 for the fence, he would give the builder a similar value in beef. Barter is a type of trade in which goods or services are directly exchanged for other goods and/or services, without the use of money. It can be bilateral or multilateral, and usually exists parallel to monetary systems in most developed countries, though to a very limited extent. Barter usually replaces money as the method of exchange in times of monetary crisis, when the currency is unstable and devalued by hyperinflation.
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