Question

State with reasons the following statement is True or False.
In Barter system there is direct exchange of goods.

• A. True
• B. False

Answer 1

The correct option is A True

Barter system was a system of exchange where goods were exchanged for goods and there was no common medium of exchange in the economy. Under this system, people exchanged commodities for commodities to satisfy their wants. Like a person who had 1 kg of rice and wanted 1 kg of wheat could exchange the rice with another person who had 1 kg of wheat and wanted 1 kg of rice instead.