The ‘Barter system’ in trade means:
Answer & explanation
Correct answer: option 1
The correct answer is Option (1) → Exchange of Goods
Option (1) Exchange of Goods — Correct. The barter system was the initial form of trade in primitive societies, the direct exchange of goods. A potter who needed a plumber had to find a plumber who needed pots and exchange pots for the plumbing service.
Option (2) Exchange of currency — Incorrect. Barter works without money; money came later to overcome its difficulties.
Option (3) Exchange of ideas — Incorrect. Sharing ideas is communication, not trade; barter is an exchange of goods.
Option (4) Exchange in digital currency — Incorrect. Digital currency is money in electronic form, still the money that barter does without.
Note: The concept in Option (4), ‘digital currency’, is not in NCERT (2025-26); explained here for the benefit of the students.
NCERT (2025-26): “…The initial form of trade in primitive societies was the barter system, where direct exchange of goods took place. In this system if you were a potter and were in need of a plumber, you would have to look for a plumber who would be in need of pots and you could exchange your pots for his plumbing service.” “The difficulties of barter system were overcome by the introduction of money.…” |