A Monetary System Is Preferable Over the Barter System Because

question 37

Multiple Choice

A monetary system is preferable over the barter system because it

• A) reduces transaction costs.
• B) is easier to track by the government.
• C) limits cash leakages.
• D) is determined by the Congress.

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Definitions:

Simple Rate Of Return

A calculation that measures the percentage return on an investment or project, not accounting for the complexity of interest compounding.

Cash Operating Expenses

Expenses that a company pays out in cash during an operational period, including salaries, utilities, and rent, but excluding non-cash expenses like depreciation.

Annual Depreciation

The allocation of an asset's cost over its useful life, representing how much of an asset's value has been used up during a fiscal year.

Simple Rate Of Return

A straightforward method of calculating the return on investment by dividing annual incremental net operating income by the initial investment cost.