Barter is not as efficient as money because barter requires a double coincidence of wants.
In commerce, barter is a system of exchange in which the participants of a transaction exchange goods or services directly for other goods or services without using a medium of exchange, such as money. Economists distinguish barter from the gift economy in several ways; exchange, for example, involves an exchange of immediate reciprocity, without delay in time.
Exchange usually takes place on a bilateral basis, but can be multilateral. In most developed countries, barter exists alongside monetary systems to a very limited extent. Market participants use barter to replace currency as a method of exchange during times of currency crises, such as when currencies become volatile or simply unavailable for exchange.
The above question is incomplete, the complete ques is-
From Paper-Clip to House, in 14 Trades
A 26-year-old Montreal man appears to have succeeded in his quest to barter a single, red paperclip all the way up to a house. It took almost a year and 14 trades.
Source: CBC News, July 7, 2006
Is barter a means of payment? Is it just as efficient as money when trading on e-Bay? Explain.
Barter ______ a means of payment. When trading on e-Bay, barter _______.
A. is as efficient as money because sellers on e-Bay don't necessarily expect to be paid in cash
B. is not as efficient as money because barter requires a double coincidence of wants
C. is not as efficient as money because barter requires a double coincidence of wants
D. is as efficient as money because sellers on e-Bay don't necessarily expect to be paid in cash
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