Under a System of Barter

question 54

Multiple Choice

Under a system of barter

• A)each individual trades output directly with another.
• B)only agricultural goods may be traded.
• C)goods may be traded for money, but money may not be traded for goods.
• D)currency is accepted for purchases, but personal checks are not.

---

Definitions:

Longer Maturities

Refers to bonds or other fixed-income securities that have a longer time until the final repayment date.

Pure Yield Pickup Swap

A strategy where an investor swaps out of one bond into another with the aim of achieving a higher yield.

Price Risk

The possibility that the value of a financial instrument or asset will fluctuate due to changes in market prices, affecting investors' returns.

Reinvestment Rate Risk

The risk that income from an investment will be reinvested at a lower rate than the original investment.