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
- Actually, it's C. That's what barter means. The other options all use money of some sort.
- "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.
- 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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