I'm still having trouble deciding if the answer should be this or that on the sentence below.

Let's exchange _______ bread for these crackers.
I know that this means close by and that means further away. But the way the sentence is worded it is confusing me.

Either that or this is correct. It depends on the context. However, if you must choose, the answer is probably "this" to be consistent with "these."

In order to figure out which word to use in the sentence, let's break it down and analyze the context.

The sentence says, "Let's exchange _______ bread for these crackers."

In this context, the word "exchange" implies that you are swapping or trading something with someone else. Thus, you need to consider the proximity of the bread in comparison to the crackers.

If the bread is close by, near you or the person you are talking to, you would use "this." This indicates that you are referring to something nearby. For example:

"Let's exchange this bread for these crackers" would imply that the bread in question is physically closer to you or the person you are talking to.

On the other hand, if the bread is further away, not close to you or the person you are talking to, you would use "that." That indicates that you are referring to something further away. For example:

"Let's exchange that bread for these crackers" would imply that the bread in question is not physically close to you or the person you are talking to.

So, to determine if you should use "this" or "that," you need to consider the relative proximity of the bread in comparison to the crackers. If the bread is close by, use "this"; if the bread is further away, use "that."