Question

Which of the following statements is true about trade?

• A. Trade is the buying and selling of goods only.
• B. Trade is the buying and selling of both goods and services.
• C. Trade happens only if goods and services are exchanged for money.
• D. Trade helps in fulfilling the needs of the people.

Answer 1

Answer: (B), (D)

Trade helps in fulfilling the needs of the people.

The buying and selling of goods and services is called trade. It may or may not involve the exchange of money. Goods and services can be exchanged for other goods and services as done in barter system. This is also considered trade. Trade helps in fulfilling the needs of people as goods and services flow from the place of excess to the place of deficit.