Question

Which of the following terms refers to an alternative financing method where products are exchanged between nations rather than currency?

1) Barter system
2) Currency exchange
3) Trade deficit
4) Foreign investment

Answer 1

The term that refers to an alternative financing method where products are exchanged between nations rather than currency is the barter system.

Step-by-step explanation:

The correct answer is 1) Barter system. A barter system refers to an alternative financing method where products are exchanged between nations rather than currency. In this system, goods and services are traded directly without the need for money. For example, if Country A has a surplus of wheat and Country B has a surplus of cotton, they can exchange these products without using money. This type of trade was common in ancient civilizations and is still used in some parts of the world today.