Question

When early settlers needed to buy farming equipment and supplies, they often would use the milk, eggs, and crops their farms produced as currency. As it pertains to money, this scenario depicts
A) using materials that have their own value to society as money.

B) using unlimited-supply commodities as money.

C) using "IOUs" as money.

D) bartering unlimited goods for limited goods.

E) bartering unlimited goods for other unlimited goods.

Answer 1

Answer:

The correct answer is A)

Explanation:

There is no good or service that is unlimited.

The concept of the Barter system was simply a method of exchanging value for value.

• It was phased away due to several reasons:
• It was not a good store of value as many of the goods were perishable
• it didn't make for good administration: It was too cumbersome and problematic. Imagine having to store three trailers of eggs awaiting a barter exchange

Cheers!