Question

Exchange of goods with other goods is called _______.

• A. money exchange
• B. barter exchange
• C. commodity exchange
• D. goods exchange

Answer 1

The correct option is B barter exchange

• In the Ancient times, barter system was used by People to exchange services and goods for other services and goods in return.
• The problem of double coincidence of wants arise due to the above mentioned exchange of goods system.
• The problem was solved with the introduction of money..
• Money is used in modern world medium of exchange and for storage of value.

The correct option is B.