Compared to a monetary system of exchange, the barter system does which of the following?

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The barter system increases transaction costs because there is a need to find a party that has what one wants and wants what one has to offer. This can involve more time and resources than exchanging currency. The volume of exchange in the economy can also decrease because the search costs for a barter exchange can be high, discouraging some trades. Finally, the barter system can promote inefficient use of time and energy because parties may have to spend time and resources searching for potential trades instead of focusing on production or other economic activities.

Compared to a Monetary System of Exchange, the Barter System