A major source of inefficiency in barter economies is that they require:
A)a standard of deferred payment to make trade possible.
B)a double coincidence of wants in exchange.
C)more liquid stores of value than do monetary economies.
D)All of these options are correct.

Question

Quizplus · Accepted Answer

Barter economies require both parties to have something the other wants or needs in order to trade. This double coincidence of wants is a major source of inefficiency as it can be difficult to find someone who has what you need and also wants what you have. This is not necessary in monetary economies where a medium of exchange, such as cash or credit, is used.

A Major Source of Inefficiency in Barter Economies Is That