which of the following is a way that the use of money reduces transactions cost as compared to a barter system?
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As opposed to a payments system based on barter, a payments system based on money Select one: a. requires a double coincidence of wants. b. leads to less specialization. c. makes trades less costly. d. None of the above is correct.
Haricharan G.
The high transaction costs associated with a barter system refers to: Answer a. The fact that, often times, these exchanges are taxed by governments b. The risk associated with having to carry an inventory of goods to trade c. The high cost associated with finding someone with whom to exchange d. The cost of drawing up complete contracts
Rachel G.
The primary benefit of a monetary system of exchange compared to a barter system is the increased ability to record transactions, the time necessary to find trading partners, the time devoted to shopping, and the efficiency in arranging transactions.
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