Which of the following characteristics is NOT associated with "Barter System"?
Answer & explanation
Correct answer: option 2
The correct answer is Option (2) → It is associated with modern and developed societies.
Option (1) It was the initial form of trade. — Associated with the barter system. Barter was the first form of trade in primitive societies.
Option (2) It is associated with modern and developed societies. — Not associated with the barter system. Barter belongs to primitive societies. Its difficulties were overcome when money came into use, and modern societies trade with money.
Option (3) Direct exchange of goods take place. — Associated with the barter system. Goods are exchanged directly, for example a potter’s pots for a plumber’s service.
Option (4) In this system currency is not required. — Associated with the barter system. No money is used, because goods are exchanged directly.
NCERT (2026-27): “International Trade … The initial form of trade in primitive societies was the barter system, where direct exchange of goods took place.” “The difficulties of barter system were overcome by the introduction of money.” |