Money's Basic Advantage as Compared to Barter Is That

question 139

Multiple Choice

Money's basic advantage as compared to barter is that

• A) everybody has money but not everyone has the opportunity to barter.
• B) a money system relies on a double coincidence of wants.
• C) money reduces transaction costs.
• D) money is the only medium you can use to store your wealth.

---

Definitions:

Inventory

Inventory is the array of finished goods or goods used in production held by a company during its ordinary course of business.

Firm's Value

Firm's Value represents the total worth of a company, measured by factors such as market capitalization, revenue, profits, and its assets minus liabilities.

Accounting Profit

The net income for a company as calculated according to generally accepted accounting principles (GAAP), taking into account only explicit costs.

Cash Flow

The complete sum of funds being exchanged in and out of a firm, primarily impacting its liquid financial resources.