One Advantage of a Money System Compared to a Barter

question 196

Multiple Choice

One advantage of a money system compared to a barter system is that

• A) barter never works.
• B) money creates the need for banks.
• C) money is more efficient.
• D) everyone has money.

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Definitions:

Order Quantity

The amount of stock or goods a company purchases or plans to purchase in a single order.

Operating Cycle

The amount of time it takes for a business to buy inventory, sell that inventory, and collect cash from the sale.

Cash Cycles

The duration it takes for a business to convert its investments in inventory and other resources back into cash flows from sales.

Accepts Cash

A phrase indicating that a business or entity is willing to receive cash as a form of payment for goods or services.