Evolution of the Payments System
1) The payments system is
A) the method of conducting transactions in the economy.
B) used by union officials to set salary caps.
C) an illegal method of rewarding contracts.
D) used by your employer to determine salary increases.
2) 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.
3) A disadvantage of ________ is that it is very heavy and hard to transport from one place to another.
A) commodity money
B) fiat money
C) electronic money
D) paper money