As the payments system evolves from barter to a monetary system,
A)commodity money is likely to precede the use of paper currency.
B)transaction costs increase.
C)the number of prices that need to be calculated increase rather dramatically.
D)specialization decreases.

Question

Quizplus · Accepted Answer

Commodity money, such as gold or silver, was commonly used before the invention of paper currency. This is because commodity money has intrinsic value, unlike paper currency that relies on faith in the issuing authority.

Therefore, as the payments system evolves from barter to a monetary system, commodity money is likely to precede the use of paper currency.

As the Payments System Evolves from Barter to a Monetary