BARTER SYSTEM

1.What possess general acceptability ?

• money

• bank draft

• bill of exchange

• none of these

2.Which of the following is an essential feature of barter system ?

• exchange of goods for money

• existence of money

• double coincidence of wants

• availability of products

3.Which one of these is a limitation of barter system?

• lack of common measure of value

• ..lack of store value

• lack of double coincidence of value

• all of these

4.perishable goods can lose their value

• true

• false

Read the following dialogue:

Sita: I want 1 kg of potatoes

Rani: What will you give in exchange ?

Sita: can i give you 2 litres of milk in returen for the potatoes?

Rani : I do not want milk . I want a pair of shoes.

Which of the following problem is being faced by Sita and Rani in their exchange process +

• lack of standard of deferred payment

• lack of double coincidence of wants

• lack of store value

• absence of common unit of value

6.Which of the following system referred to goods being exchanged for goods in olden days /

• functional system

• money system

• barter system

• primary system

7.Which of the following is not a problem of barter system?

• double coincidence of wnats

• unit of account

• store of value

• unemployment

8.barter is the trade of goods or services with ?

• exchange of services

• exchange of goods and services

• free exchange of money

• none of these

9.There is no common denomination under barter exchange to express the exchange ratios

• True

• False

10.The exchange of goods and services is made more efficient by

• money

• government

• barters

• some combination of government transfer and barter