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Q.

Barter system means:


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a

Exchange of goods with money

b

Exchange of services with money

c

Exchange of goods with other goods

d

None 

answer is C.

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Detailed Solution

A barter system is the direct exchange of goods with goods without any use of money. In the barter system, both parties agree to exchange each other's goods. For instance, farmers willing to buy milk will have to provide a good of the seller's choice. This situation, where the farmer and the person who sells milk both need each other's products, is termed a double coincidence of wants.
 
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