10 Questions
Barter involves the exchange of goods or services without using money as a medium of exchange.
True
Barter transactions often involve delayed reciprocal exchange rather than immediate exchange.
False
Barter usually takes place on a unilateral basis.
False
Barter is commonly used as a replacement for money in developed countries.
False
No ethnographic studies have shown that any society has used barter without any other medium of exchange.
True
Money is a verifiable record generally accepted as payment for goods and services and repayment of debts.
True
Nearly all contemporary money systems are based on unbacked fiat money with use value.
False
The money supply of a country comprises all currency in circulation and one type of bank money.
False
Bank money forms the largest part of broad money in developed countries.
True
The word money derives from the Latin word moneta with the meaning 'coin' via French monnaie.
True
Study Notes
Barter
- Barter is the exchange of goods or services without using money as a medium of exchange.
- Barter transactions often involve delayed reciprocal exchange rather than immediate exchange.
- Barter usually takes place on a unilateral basis.
Money
- Money is a verifiable record generally accepted as payment for goods and services and repayment of debts.
- Nearly all contemporary money systems are based on unbacked fiat money with use value.
- The money supply of a country comprises all currency in circulation and one type of bank money.
- Bank money forms the largest part of broad money in developed countries.
Etymology of Money
- The word "money" derives from the Latin word "moneta" with the meaning 'coin' via French "monnaie".
Test your knowledge of barter trade with this quiz! Explore the history, principles, and practices of bartering, and learn about its distinctions from other forms of exchange.
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