ECONOMICS
MONETARY POLICY
Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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layaways
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IOUs
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barter
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None of the above
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Detailed explanation-1: -Bartering is the exchange of goods and services between two or more parties without the use of money. It is the oldest form of commerce. Individuals and companies barter goods and services between each other based on equivalent estimates of prices and goods.
Detailed explanation-2: -The history of bartering dates back to 6000 BC. Introduced by Mesopotamia tribes, bartering was adopted by the Phoenicians. The Phoenicians bartered goods to those located in various other cities across oceans.
Detailed explanation-3: -Due to lack of money, bartering became popular in the 1930s during the Great Depression. It was used to obtain food and various other services. It was done through groups or between people who acted similar to banks. If any items were sold, the owner would receive credit and the buyer’s account would be debited.
Detailed explanation-4: -A barter economy is a cashless economic system in which services and goods are traded at negotiated rates. Barter-based economies are one of the earliest, predating monetary systems and even recorded history. People can successfully use barter in many almost any field.