ECONOMICS
FEDERAL RESERVE
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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money serves as a medium of exchange.
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only precious metals are accepted as money goods are traded directly for other goods.
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goods are traded directly for other goods.
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paper money is backed by gold.
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Detailed explanation-1: -Barter is an act of trading goods or services between two or more parties without the use of money-or a monetary medium, such as a credit card. In essence, bartering involves the provision of one good or service by one party in return for another good or service from another party.
Detailed explanation-2: -Barter is an alternative method of trading where goods and services are exchanged directly for one another without using money as an intermediary. For instance, a farmer may exchange a bushel of wheat for a pair of shoes from a shoemaker.
Detailed explanation-3: -Bartering is the exchange of goods or services. A barter exchange is an organization whose members contract with each other (or with the barter exchange) to exchange property or services.
Detailed explanation-4: -Bartering is a cashless exchange system, where two parties trade goods or services directly, without money entering the conversation. It might bring to mind medieval marketplaces, but bartering still occurs a lot in the modern business world – typically in the shape of trading space, services or supplies.
Detailed explanation-5: -Goods were exchanged for food, tea, weapons, and spices. At times, human skulls were used as well. Salt was another popular item exchanged.