The use of money is more efficient than barter because the introduction of money
A)reduces the need for economic specialization.
B)reduces the need to exchange goods.
C)reduces the need for other stores of value.
D)reduces transaction costs.

Question

Quizplus · Accepted Answer

The use of money reduces transaction costs as it eliminates the need for a double coincidence of wants. Barter requires both parties to have goods or services that the other party desires, while money can be used as a medium of exchange. This makes transactions easier and more efficient.

The Use of Money Is More Efficient Than Barter Because