A village trades grain directly for cloth with no cash involved. That system is:
ABarter
BBarrel
CBatten
DBantam
Answer & Solution
Correct answer: A. Barter
1. No money changes hands.
2. Goods are swapped for other goods.
3. That system is barter.
_Source: OpenStax Principles of Macroeconomics 3e, Chapter 14, Money and Banking._
Keep practising Money and Banking
Browse all Money and Banking questions for CAIIB, or explore more Economics topics.