ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -The above statement is true as barter system is a system of exchange where goods or services are directly exchanged for other goods or services without using a medium of exchange such as money.

Detailed explanation-2: -Barter system was a system of exchange where goods were exchanged for goods and there was no common medium of exchange in the economy. Under this system, people exchanged commodities for commodities to satisfy their wants.

Detailed explanation-3: -Money is better than the barter system because; it is durable, portable, interchangeable, easily divisible into smaller units, and is universally recognized by most people. On the other hand, the barter system has challenges presented by the double coincidence of wants, bulkiness of goods, and time consumption.

Detailed explanation-4: -Better professional relationships: Bartering not only helps in to trade eve without cash but also helps in creating a good psychological understanding and relations among the traders as compared to the monetary transactions. Therefore, it helps to expand the business networks and relations.