The Barter System (POB)

Barter system is the exchange of goods and cash.

• True

• False

there are no problem faced when people are using barter system.

• True

• False

a hunter will exchange animal skin with a farmer for grains.

• True

• False

barter system needs at least three parties.

• True

• False

perishable goods can lose its value.

• True

• False

metal were later used as a payment.

• True

• False

Barter is the trade of goods or services with ?

• free exchange of money

• exchange of goods and services

• exchange of services

•  None of them

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

• Double coincidence of wants

• existence of money

• exchange of goods for money

• Availability of product

Barter is inconvenient because

• of the necessity of the double coincidence of wants.

• large amounts of money are required.

• gold is bulky and difficult to transport during day-to-day transactions

• because resources are limited.

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

• True

• False