Barter system isa)Exchange of moneyb)Exchange of goodsc)Exchange of traded)Exchange of foreign exchangeCorrect answer is option 'B'. Can you explain this answer?

Question

Answer

The system of exchange where goods or services are directly exchanged for other goods or services without saying a medium of exchange, such as money is known as the Barter system

Answer

Barter is a system of exchange,where participants in a transaction directly exchange of goods or services for other goods or services without using a medium of exchange ,such as money..

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In barter system. We exchange our goods to one another to full there demand and desire. Suppose if someone need rice but he have wheat. And someone need wheat but he have rice. So they both can exchange there goods to one another. And fulfill there demand

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A system where give and take of goods  is there is known as barter system

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Barter system is the process of exchange of goods for goods..This process has been stopped by the evolution of money..

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This is the process of exchange goods

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Direct exchange of goods by good to satisfied needs are said to be barter system

Answer

The barter system, also known as bartering, is a method of exchanging goods and services without the use of money. In this system, individuals or businesses trade goods directly with one another, relying on the mutual needs and wants of the parties involved.

Exchange of Goods:
The correct answer to the question is option 'B', which states that the barter system involves the exchange of goods. This means that individuals or businesses trade their own goods or services for the goods or services of others. For example, if a farmer has excess wheat and needs clothes, he can trade his wheat with a tailor in exchange for clothes.

Key Points:
- The barter system is based on the principle of mutual exchange where goods or services are traded directly between parties.
- Money is not involved in the barter system, and individuals rely on the value of the goods or services being exchanged.
- The barter system is often used in situations where there is a lack of currency or when individuals have specific needs that cannot be met through monetary transactions.
- The value of goods being exchanged in a barter system is determined by the subjective assessment of the parties involved. For example, the farmer and the tailor would need to agree on the quantity and quality of wheat and clothes to be exchanged.
- Bartering can occur on a small scale, between individuals or businesses, or on a larger scale, such as between countries.
- The barter system has both advantages and disadvantages. On one hand, it allows individuals to obtain goods or services they need without the use of money. On the other hand, it can be difficult to find someone who has what you need and is willing to trade for it. Additionally, the value of goods may not always be equivalent, leading to disputes or imbalances in trade.

Conclusion:
In conclusion, the barter system involves the exchange of goods between individuals or businesses without the use of money. It is a method of trading based on mutual needs and wants, and it has been used throughout history in various societies and economies. While the barter system has its advantages, such as facilitating trade in the absence of currency, it also has limitations and challenges.

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