Barter Flashcards
How can money or currency overcome problems posed in bartering activities?
You will know how much each note is worth before the game begins, therefore being able to make better decisions when bartering
What is barter?
The exchange of goods or services for other goods or services without money
Why is barter not used in a significant way in Australia?
Because it has a very stable economy and most people are employed, thus happily using our currency to purchase goods and services
Why was rum originally used as money in Australia?
Because it was highly popular with convicts who made up most of the population at the time
What problems are caused by using an item, such as rum, as currency in a country?
You are forced to carry it around everywhere and workers who were paid in rum drank it instead of using it to purchase goods and services
What is money?
Money is a current medium of exchange in the form of coons and banknotes
What is exchange?
The changing of money to its equivalent in the currency of another country
What are some advantages of using barter for trade?
There is flexibility in trading, option of using services instead of material items, utilising natural resources instead of wasting and there is no foreign exchange
What are some disadvantages of using barter for trade?
Lack of trust, no proof of legitimacy, goods cannot be distributed equally, difficult to transfer heavy items and goods may be limited
