A barter economy is one in which a. money serves as a medium of exchange. b. only precious metals are accepted as money. c. goods are traded directly for other goods. d. paper money is backed by gold.

Question

Melody Meza

Business

14 January, 02:43

A barter economy is one in which a. money serves as a medium of exchange. b. only precious metals are accepted as money. c. goods are traded directly for other goods. d. paper money is backed by gold.

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Answers (1)

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Michaela Stone · Answer 1

The correct answer is letter "C": goods are traded directly for other goods.

Explanation:

Barter economy was the first type of exchange system known to mankind by which individuals used to trade objects for others directly. The value they would give to their items was subjective and imprecise which led to the creation of currencies that allowed setting standard values for similar objects.

The functions of money are being a medium of exchange, a store value, and a unit of account.