Why Might a Company Use Barter Rather Than Money to Make

Multiple Choice

Why might a company use barter rather than money to make a trade?

A) Barter trade is generally more efficient than money-based trade.
B) Barter can enable two firms to trade when their cash flows are limited.
C) Money requires a coincidence of wants; barter is more direct.
D) Money is efficient only for large transactions, so barter is preferred for smaller transactions.