Using a Good as a Medium of Exchange Confers the Benefit

question 81

Multiple Choice

Using a good as a medium of exchange confers the benefit that

• A)the need to quote so many prices in trade is reduced.
• B)the need for a double coincidence of wants is greatly increased.
• C)the need for specialization is reduced.
• D)transactions costs are increased, but they now may be paid in money terms.

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Definitions:

Revenues And Expenses

Terms referring to the income generated from business activities and the costs incurred to earn that income, respectively.

Specific Day

A precise date identified for a particular event or activity.

Gain Or Loss

A financial result that indicates the difference between the sale price of an asset and its original purchase price.

Functional Currency

The primary currency of the main economic environment in which an entity operates.