Barter involves (LO2) a) money b) specialization c) a double coincidence of wants d) demand deposits

First, we need to identify which of the options is directly involved in the process of bartering. Based on the definition of bartering, which entails the direct exchange of goods and services without the use of money, the correct answer is 'c) a double coincidence of wants'.

Now, let's go through the other options and explain why they are not involved in bartering: a) Money- Bartering does not involve money since it is based on the direct exchange of goods and services. Thus, option 'a' is not correct. b) Specialization- Although specialization (a focus on producing specific goods and services) might play a role in the types of goods and services people offer in bartering, it is not the primary aspect of the bartering process. Hence, option 'b' is not the correct answer. d) Demand deposits- Demand deposits are funds held in a bank account that can be withdrawn at any time without any prior notice, like checking accounts. Demand deposits are a form of money and are not involved in bartering. Therefore, option 'd' is not correct.

C) A double coincidence of wants- Bartering relies on a double coincidence of wants, meaning that each party involved in the transaction must want what the other party offers. This condition is essential for a successful barter transaction. The parties involved must find a mutually agreeable exchange of goods or services. Therefore, the correct answer is 'c) a double coincidence of wants'.