Why Is Barter Inefficient When Compared to Using Money for Trading

question 67

Multiple Choice

Why is barter inefficient when compared to using money for trading?

• A)Potential buyers may not have appropriate items of value to sellers with which to barter.
• B)The government cannot tax the barter system.
• C)It cannot be done over long distances.
• D)Buyers and sellers don't always agree on value.

---

Definitions:

Net Loss

The amount by which a company's expenses exceed its revenues during a specific period, indicating a financial loss.

Reacquired

Refers to the act of buying back previously sold shares or assets by the company that issued or sold them initially.

Common Stock

A type of equity security that represents ownership in a corporation, carrying voting rights and potentially dividends.

Preferred Stock

A class of ownership in a corporation that has a higher claim on assets and earnings than common stock, usually with fixed dividends and without voting rights.