Why might a company use barter rather than money to make a trade?
A) Barter trade is generally more eﬃcient than money-based trade.
B) Barter can enable two ﬁrms to trade when their cash ﬂows are limited.
C) Money requires a coincidence of wants; barter is more direct.
D) Money is eﬃcient only for large transactions, so barter is preferred for smaller transactions.

Question

Quizplus · Accepted Answer

Barter can be helpful when cash flows are limited, as it allows companies to trade goods or services without exchanging money. This can be particularly useful for smaller businesses or those experiencing financial constraints.

Why Might a Company Use Barter Rather Than Money to Make