.8Which one of the following statements is incorrect?

A. In a barter economy there has to be a double coincidence of wants before exchange can take place.

B. Money is not the only possible unit of account in a monetary economy.

C. Money is a good store of value during periods of high inflation.

D. Money always serves as a medium of exchange. E. Modern money is not covered by a commodity such as gold.

1.9 Which one of the following statements is correct?

A. 10 per cent of the money stock in South Africa is backed by gold.

B. 20 per cent of the money stock in South Africa is backed by gold.

C. 5 per cent of the money stock in South Africa is backed by gold.

D. 1 per cent of the money stock in South Africa is backed by gold.

E. The money stock in South Africa is not backed by gold.