Which of the Following Statements Is True of a Barter

question 56

Multiple Choice

Which of the following statements is true of a barter system?

• A)In a barter system economy,no rates of exchange are defined.
• B)In a barter system economy,there are as many different rates of exchange as there are pairs of goods to trade.
• C)In a barter system economy,rates of exchange are expressed in goods per dollar.
• D)In a barter system economy,rates of exchange are expressed in dollars per good.
• E)In a barter system economy,rates of exchange are denominated in gold or silver.

---

Definitions:

Strike Price

The fixed price at which an options contract may be purchased or sold upon its exercise.

Present Value

The current worth of a future sum of money or stream of cash flows given a specified rate of return.

Future Value

The amount of money an investment is expected to grow to over a period of time, assuming a particular interest or growth rate.