Which of the Following Is an Example of Barter

question 2

Multiple Choice

Which of the following is an example of barter?

• A)A parent gives a teenager a $10 bill in exchange for her babysitting services.
• B)A homeowner gives an exterminator a check for $50 in exchange for extermination services.
• C)A barber gives a plumber a haircut in exchange for the plumber fixing the barber's leaky faucet.
• D)All of the above are examples of barter.

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Definitions:

Desired Rate of Return

The minimum percentage return an investor expects to achieve by investing in a particular asset.

Present Value

The value today of a sum of money or cash flows expected in the future, discounted at a particular rate of return.

Compound Interest

Interest calculated not only on the original principal amount but also on the accrued interest from past periods on a deposit or loan.

Earnings Rate

Earnings rate refers to the percentage of return generated by an investment or the profitability of a company over a specified period.