Question

Barter system is no longer used as a medium of exchange as there is no .

• A. exact rate of exchange
• B. safety and security
• C. use of coins
• D. acceptability

Answer 1

The correct option is A exact rate of exchange

A system where buyers and sellers exchange goods without using money is known as barter system. There are no exact rules or rates for exchange of commodities. For example, an apple can be exchanged for two oranges or three lemons.