10) Barter is preferable to the use of money for which of the following reasons?

Question

10) Barter is preferable to the use of money for which of the following reasons? It reduces the number of relative prices we need to keep track of. It avoids the need to arrange for a double coincidence of wants. It allows for a less complicated payments system O for all the above reasons. for none of the above reasons -barter is less efficient than the use of money 11) As compared to commodity money, an advantage of fiat money is that it is cheaper to produce and maintain. less likely to be counterfeited. less likely to cause inflation. All of the above ONone of the above

Explanation / Answer

Answer 10 : Bartar system is preferable to the use of money for none of the above reasons - Bartar is less efficient than the use of money. Money is most preferable medium of exchange as it reduced transaction cost. Bartar has multiple number of prices for each goods.

Answer 11: As compared to commodity money, an advantage of Fiat money is that it is cheaper to produce and maintain as compared to commodity money because it is not related to mineral resources of an economy.

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