Barter System Is Less Desirable Than Using Money for Exchange

question 117

Multiple Choice

Barter system is less desirable than using money for exchange because:

• A)it is a more inefficient and a time-consuming process.
• B)gold and silver are risky and inconvenient to transport.
• C)it tends to promote inflation.
• D)gold and silver are relatively scarcer than other commodities.
• E)the government maintains too important a role in the money-creating process.

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Definitions:

Long-Run Profitability

A measure of a company's ability to maintain earnings at a certain level over the length of time necessary to cover all costs, including variable and fixed costs.

Imitate

The act of copying or mimicking the actions, appearance, or characteristics of someone or something.

Stock Price

The cost of purchasing a share of ownership in a company, which can fluctuate based on factors like company performance and market conditions.

Discounted Value

The present value of future cash flows discounted back to the present using a specific rate.