How does the use of money differ from the use of barter in the exchange of goods and services?
Please provide the best answer for the statement.
Barter requires a coincidence of wants in order for exchange to take place both parties have to want what the other is offering. Money, on the other hand, acts as a medium of exchange in that the appropriate quantity of it is generally acceptable in exchange for any good or service.
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Dana wants to try working as an independent contractor this summer. She has a 50 percent chance that she will make $10,000 and 50 percent chance that she will make nothing. What's Dana's expected income from taking this job?
A) $10,000 B) $7,000 C) $5,000 D) zero
If the required reserve ratio is one-third, currency in circulation is $300 billion, checkable deposits are $900 billion, and there is no excess reserve, then the M1 money multiplier is
A) 2.5. B) 2.8. C) 2.0. D) 0.67.