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Question
Barter sytem is the exchange of goods and services without the presence of ___________.
Barter sytem is the exchange of goods and services without the presence of ___________.
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Solution
The correct option is D money
In a barter system, the parties exchanged goods only if they wanted each other's goods. This situation was known as the double coincidence of wants, which was one of the drawbacks of the barter system. Therefore, an intermediate good or a medium of exchange was introduced to overcome this drawback. This intermediate good or medium is commonly known as money.
In a barter system, the parties exchanged goods only if they wanted each other's goods. This situation was known as the double coincidence of wants, which was one of the drawbacks of the barter system. Therefore, an intermediate good or a medium of exchange was introduced to overcome this drawback. This intermediate good or medium is commonly known as money.
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