Bartering Quiz

People in ancient times did not use money to obtain the goods or services they needed.

true

Adam Smith is known as the “father of modern bartering.”

false

Because of the difficulty to establish a value of a bartered transaction, the IRS does not tax a bartered exchange.

false

The Native Americans were reluctant to trade their furs with early explorers and settlers because they could not trust them to be fair.

false

Colonists used bartering as a way to pay their debts.

true

In recent years, more than ________________ businesses in the United States have been involved in barter exchanges each year.

450,000

A famous bartering transaction occurred in the early 1600’s between the Dutch Settlers and the Native Americans. For $_____ worth of goods, the Native Americans traded land that is now called ___________________ in New York.

$24 , Manhattan Island

Bartering does not use ______________ to exchange for goods or services.

Money

George Washington used bartering in order to obtain supplies for the __________ Army.

Continental

The dollar value of a bartered item is determined by its current ______________ value.

Market

**B**arter

is a system of exchange when goods and/or services are directly exchanged for other goods and/or services without using money.

Goods and Services

are the most basic products of the economics system that consist of tangible and intangible consumable items satisfy the needs and wants of a consumer.

Goods

are things that you can touch such as clothing, food, tools, and furniture.

Services

are things that someone does for you but you cannot touch such as a haircut, internet & phone lines, and electric power.

Medium of Exchange

money/currency is the most common and accepted medium of exchange and its essential function is its measure/standard of value. The first and oldest form of money was cattle *(cows, camels, sheep, and other livestock).*