How Many Prices Would There Be in a Barter Economy

question 40

Multiple Choice

How many prices would there be in a barter economy with 100 goods?

• A) 100
• B) 1,000
• C) 4,950
• D) 10,000

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Definitions:

Forward Rate

The expected interest rate agreed upon in a forward contract, applicable to a financial transaction that will occur in the future.

Spot Rate

The current market price at which a particular asset can be bought or sold for immediate delivery.

Japanese Yen

Japan's designated legal tender, marked by the symbol ¥, and a highly traded currency in the international forex market.

Risk-Free Rate

The assumed yield an investment would generate if it carried no risk, often indicated through government bond yields.