Barter
A) works as well as money in all cases.
B) involves a double coincidence of wants if an exchange takes place.
C) serves as store of value in primitive societies.
D) is any exchange, with or without the presence of money, in which the participants negotiate the terms of trade.

Question

Quizplus · Accepted Answer

Barter involves exchanging goods or services without using money as a medium of exchange. In a barter transaction, both parties must have goods or services that the other wants and values, which creates a double coincidence of wants. Therefore, B is the correct choice. Option A is incorrect because barter does not work as well as money since it lacks the advantages of divisibility, uniformity, and store of value that money provides. Option C is only partially correct because barter itself does not serve as a store of value; rather, it is the goods that are exchanged that serve as a store of value. Option D is too broad and includes any exchange, which goes beyond the definition of barter.