"It is easy to carry forward one’s wealth under the barter system."
Which of the following options is true in regards to the above statement?
Answer & explanation
Correct answer: option 2
The correct answer is Option 2: The statement is false
It is difficult to carry forward one’s wealth under the barter system. Suppose you have an endowment of rice which you do not wish to consume today entirely. You may regard this stock of surplus rice as an asset which you may wish to consume, or even sell off, for acquiring other commodities at some future date. But rice is a perishable item and cannot be stored beyond a certain period.