Barter Is an Inefficient Means of Exchange Because

question 201

Multiple Choice

Barter is an inefficient means of exchange because

• A) barter transactions require a double coincidence of wants.
• B) demand will not necessarily equal supply.
• C) barter only occurs in relatively primitive economies.
• D) in a barter transaction only one party needs to want what the other party has to sell.

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Definitions:

Market Value

The current price at which an asset or a service can be bought or sold in a marketplace.

General Journal

A primary bookkeeping ledger used by businesses to record all transactions in chronological order.

General Ledger

The comprehensive set of accounts that records all transactions of a business, serving as the foundation for preparing financial statements.

Accounting Time Periods

The specific intervals or time frames for which financial information is reported, such as monthly, quarterly, or annually.