Question

Is the following statement true or false? Give reasons to support your answer.

Barter is an easier method of exchange of goods.

Options

• True

• False

Answer 1

This statement is false.

Explanation:

Barter is not an easier method of exchange because it requires a double coincidence of wants, meaning both parties must have something the other wants at the same time. This makes transactions difficult and inefficient. Moreover, there are issues with divisibility, as not all goods can be easily divided for trade, and storing value is inconvenient since many goods (like food) can perish or lose value over time.