Why is money transaction system better than barter system ? -SST 10th

1 Answer

Answer :

(i) Transaction system is better than barter system because double coincidence of wants creates problem. (ii) For example, shoe manufacturer wants to sell shoes in the market and wants to buy wheat. For this, he would look for a wheat growing farmer who would exchange his wheat with the shoes.  (iii) In barter system, goods are exchanged without the use of money.  (iv) In contrast, in an economy where money is in use; money by providing the crucial intermediate step eliminates the need for double coincidence of wants.

Related questions

Description : (i) In barter transaction goods are exchange for ____________

Last Answer : Complete the following sentence : (i) In barter transaction goods are exchange for ____________ ( ... more than his assets is known as ___________

Description : I have to prepare a 15 page project(excluding pictures) on the topic''Evolution of money from barter system to plastic money.'' How should i do it? -SST 10th

Last Answer : This answer was deleted by our moderators...

Description : What are the advantages and disadvantages of the barter system over the use of money?

Last Answer : Tax avoidance

Description : Which of the following is the oldest system of money? (a) Barter ; (b) Plastic money ; (c) Credit money ; (d) Gold

Last Answer : (a) Barter ;

Description : Barter transactions means - (1) Goods are exchanged with gold. (2) Coins are exchanged for goods. (3) Money acts as a medium of exchange. (4) Goods are exchanged with goods.

Last Answer : (4) Goods are exchanged with goods. Explanation: Barter is a system of exchange where goods or services are directly exchanged for other goods or services without using a medium of exchange, ... crisis, such as when the currency may be either unstable or simply unavailable for conducting commerce,

Description : ____________ is termed as consideration in a contract of sale: A. Exchange money B. Barter money C. Price D. Reward

Last Answer : C. Price

Description : What do all of the following have in common: tuition, fee, premium, retainer, dues? A)They all must be paid in cash. B)They are forms of exchange similar to, but not identical with money. ... of exchange similar to, but not identical with barter. D)They are different terms for the concept of price.

Last Answer : D)They are different terms for the concept of price.

Description : Barter transactions means (1) Goods are exchanged with gold. (2) Coins are exchanged for goods. (3) Money acts as a medium of exchange. (4) Goods are exchanged with goods.

Last Answer : Goods are exchanged with goods.

Description : State three disadvantages of the barter system. -SST 10th

Last Answer : . In a barter system, double coincidence of wants is required. . Here, the person is required to sell only what the other wishes to buy. . If both parties do not agree, the goods cannot be exchanged for goods.

Description : Give an example to show that double coincidence of wants is necessary in a barter system. -SST 10th

Last Answer : A shoe manufacturer wants to sell shoes in the market and buy wheat. The shoe manufacturer will first exchange shoes that he had produced for money, and then exchange the money for wheat. Imagine how ... agree to sell and buy each other's commodities. This is known as double coincidence of wants.

Description : What is the meaning of barter system ? -SST 10th

Last Answer : Barter system involves exchanging goods directly with no medium like money. One good is bought for another good.

Description : What is the barter system and double coincidence of wants ? -SST 10th

Last Answer : In the olden days, when modern currency was not in vogue, people had to sell and buy each others commodities. This was called the barter system. For instance if a shoe manufacturer wants ... goods are directly exchanged without the use of money, double coincidence of wants is an essential feature.

Description : What is the meaning of ‘barter system’? -SST 10th

Last Answer : The exchange of goods, property, services, etc. for other goods, etc. without using money is known as ‘barter system’.

Description : What are the difficulties from which the barter system of exchange suffers? -SST 10th

Last Answer : (i) Lack of double coincidence of wants. (ii) Valuations of all the goods cannot be done easily. (iii) Certain products cannot be divided.

Description : Mention three limitations of the barter system. -SST 10th

Last Answer : 'This answer was deleted by our moderators...

Description : What is Barter System ? -SST 10th

Last Answer : Barter is a system of exchange in which goods are directly exchanged without the use of money.

Description : Identify the condition when both the parties in a barter economy have to agree to sell and buy each other's commodities? What is it called ? -SST 10th

Last Answer : The situation mentioned in case of a barter economy is called Double Coincidence of Wants.

Description : Recognize the situation when both the parties in a barter economy have to agree to sell and buy each other's commodities ? -SST 10th

Last Answer : This is known as double coincidence of wants.

Description : Do you think that if the economy doesn't get back on its feet, we will resort back to a legal barter system at least partially?

Last Answer : I have been bartering for years to some extent. You should see my pearly white veneers and the beautiful kitchen my dentist has! (Hubby is a contractor.)

Description : How were the difficulties of barter system overcome? -Geography

Last Answer : The difficulties of barter system were overcome by the introduction of money

Description : Why was barter system replaced by coins?

Last Answer : Need answer

Description : People barter and trade goods. Economic decisions are based on customs. Economies are usually rural and farm-based. Which economic system is described by the list A. mixed B. market C. traditional D. command?

Last Answer : c

Description : A barter is an economic system based on the?

Last Answer : exchange of goods for other goods.

Description : Exchanging Wheat for Rice is the example of a. Indigenous Banking System b. Barter System c. Public Distribution System d. None of the above

Last Answer : b. Barter System

Description : Barter: if we all lived together in a flutherworld, minutes away from each other, what would you barter?

Last Answer : answer:I could teach beginners Spanish, bake some desserts, help your kids with math up through algebra, hook a rug, run some errands. What I need is a gardner, someone to cut back the bushes and trees in my ... once a month. Oh, and I need a handyman to do a little this and that around the house.

Description : Who is Barter?

Last Answer : Are you sure it’s not Barker? (As in Ma Barker of outlaw fame)

Description : Could you Barter and survive?

Last Answer : answer:In the question you link to I show a certain dislike for big greedy corporations, but, im just as bad. yes I would survive well, and while i hate the system we have at the moment, i ... better or worse, well, i dont know, i dont really measure things that way. im leaning towards better.

Description : In barter transactions, goods or services are purchased for other goods or services.

Last Answer : State whether the following statement are true or false with reason : In barter transactions, ... services are purchased for other goods or services.

Description : What was commonly used to barter?

Last Answer : Need answer

Description : A barter economy is?

Last Answer : an economic system based on exchanging goods instead of money.

Description : Price mechanism is a feature of - (1) Capitalist economy (2) Barter economy (3) Mixed economy (4) Socialist economy

Last Answer : (1) Capitalist economy Explanation: Price mechanism is an economic term that refers to the manner in which the prices of commodities affect the demand and supply of goods and services. It is ... that only by allowing prices to move freely will the supply of any given commodity match demand.

Description : A Free Trade Zone is an area 1. where goods are traded free of cost 2. where goods are traded through barter 3. where there are no customs duties 4. where government controls production and distribution 5. None of these

Last Answer : where there are no customs duties

Description : The gains from two nations depend on A. Domestic barter rates B. Different in the domestic barter rates of the two countries C. Terms of trade D. Degree of absolute advantage.

Last Answer : Terms of trade

Description : In a _____ countertrade the initial seller receives compensation in products that arise out of the original sale. A. consignment B. barter C. counterpurchase D. buy-back agreement E. switch trading

Last Answer : D. buy-back agreement

Description : Which of the following is not a form of countertrade? A. barter B. consignment C. switch trading D. counterpurchase E. compensation agreement

Last Answer : B. consignment

Description : Forms of countertrade include the following except ___. A. simple barter B. clearing arrangement C. switch trade D.counterpurchase E. mutual agreement

Last Answer : E. mutual agreement

Description : The oldest form of exchange--trading of products--is known as A)credit. B)buying. C)purchasing. D)barter. E)pricing.

Last Answer : D)barter.

Description : Exchange of goods against goods is called (a) Charter (b) Barter © Hunter (d) None of them.

Last Answer : (b) Barter

Description : Price mechanism is a feature of (1) Capitalist economy (2) Barter economy (3) Mixed economy (4) Socialist economy

Last Answer : Capitalist economy

Description : Price is A)the value that is exchanged for products in a marketing transaction. B)always money paid in a marketing transaction. C)more important to buyers than sellers. D)usually the most inflexible marketing mix decision variable.

Last Answer : A)the value that is exchanged for products in a marketing transaction.

Description : What will the society be like if there is no money transaction, but using skill trading instead?

Last Answer : There has to be some sort of money for modern society to work. Bartering or skill trading can work on a very local level, but if you want to buy goods on the internet you're going to need more ... like Star Trek-well, that would be really something to see. But, that isn't really bartering either.

Description : What is the sharing part in "sharing economy" when it's straight forward service for money transaction?

Last Answer : Taxes.

Description : When refunding someone's money through PayPal, is it possible for them to get their full amount back, or will there always be a transaction fee sucked out of the full amount?

Last Answer : answer:If I remember correctly (and if they haven't changed their policies), I think the transaction fee is only taken from the seller. No fee is deducted from the buyer. That should include refunds. ... stuff. (Like having proof that you refunded them.) You want to keep all of that linked together.

Description : Can I take a loan with a mobile mortgage ? I need some money for a visa. I told one , you give me so much money with my mobile. If I can do my job then you will take the mobile. And if it doesn't work, I will pay all the money in three months. Is this type of transaction permissible ?

Last Answer : This type of transaction will not be permissible. Because it is not permissible to get any benefit from the borrower in return for the loan. That includes interest. In the case in question, ... bin Masood agreed. That said , the conditional contract involves interest. (Sahih Ibn Hibban 1053)

Last Answer : The newly launched Money Transaction app is called D Money.

Description : How many years in prison for each money laundering transaction?

Last Answer : Need answer

Description : The demand for money, according to Keynes, is for - (1) speculative motive (2) transaction motive (3) precautionary motive (4) All the above motives

Last Answer : (3) precautionary motive Explanation: According to Keynes, money is demanded because of three motives -transaction, precautionary and speculative. The first two motives provide yield of convenience ... third motive provides money yield. Keynes has termed demand for money as liquidity preference.

Description : An ECS transaction gets bounced and you are unable to recover your money from your customer. Under which Act criminal action can be initiated? A. Negotiable Instrument Act 1881 B. Criminal Procedure Code C. Payment and Settlement Systems Act 2007 D. Indian Companies Act 1956

Last Answer : C. Payment and Settlement Systems Act 2007 Explanation: Under the Section 25 of Payment and Settlement Systems (PSS) Act, 2007, dishonour of an electronic fund transfer instruction due to insufficiency ... fine or both, similar to the dishonour of a cheque under the Negotiable Instruments Act 1881.

Description : What is the name of entry which is used in Bank Column cash book to record the money transaction?

Last Answer : Contra entry

Description : Ashwin borrowed a sum of Rs.6, 300 from Mishra at the rate of 14% for 3 years. He then added some more money to the borrowed sum and lent it to Ramesh at the rate of 16% of simple interest for the same time. If ... sum did he lend to Ramesh? a) Rs.6600 b) Rs.6800 c) Rs.4800 d) Rs.9800 e) Rs.8500

Last Answer : Suppose Ashwin lend Rs. x to Ramesh then, Xx16x3/100 - (X – 6300) × 14 × 3/100 = 618......(1) From equation I , x = Rs. 6800 Answer: b)