Using a Good as a Medium of Exchange Confers the Benefit

question 81

Multiple Choice

Using a good as a medium of exchange confers the benefit that

• A)the need to quote so many prices in trade is reduced.
• B)the need for a double coincidence of wants is greatly increased.
• C)the need for specialization is reduced.
• D)transactions costs are increased, but they now may be paid in money terms.

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Definitions:

Hormone/Neurotransmitter

Chemical substances that act as messengers in the body, with hormones being released into the bloodstream and neurotransmitters being involved in transmitting signals across nerve synapses.

Trust

The firm belief in the reliability, truth, ability, or strength of someone or something.

Endorphins

Chemical substances in the nervous system that are similar in structure and action to opiates; they are involved in pain reduction, pleasure, and memory and are known technically as endogenous opioid peptides.

Soothing Effect

A calming or relaxing influence that reduces stress or discomfort.