For barter to occur, traders must have a:
A) unit of account.
B) coincidence of wants.
C) medium of exchange.
D) central banking facility.

Question

Quizplus · Accepted Answer

A coincidence of wants is necessary for barter to occur because each trader must want what the other has to offer. Without this, there is no basis for trade. While a unit of account and medium of exchange are important for facilitating exchange in a monetary system, they are not necessary for barter. A central banking facility is also not necessary for barter.

For Barter to Occur, Traders Must Have A