Barter is
A)illegal in the United States
B)an efficient system of exchange
C)most useful when there is much specialization and international trade
D)only possible if money is used as a medium of exchange
E)the direct exchange of goods, without the use of money

Question

Quizplus · Accepted Answer

Barter is the direct exchange of goods and services without the use of money. It is a less efficient system of exchange compared to using money because it requires a coincidence of wants between two parties. Money, on the other hand, serves as a medium of exchange and eliminates the need for a coincidence of wants. While barter may still be used in some situations, such as in small-scale local transactions or in situations of economic crisis, it is not illegal in the United States and is not as useful for international trade or specialization.

Barter Is