Question

During barter exchange the rate of exchange was arbitrarily fixed. This resulted from ______.

Options

• Lack of common measure of Value

• Lack of divisibility

• Problem of storing wealth

• Problem of deferred payment

Answer 1

During barter exchange the rate of exchange was arbitrarily fixed. This resulted from Lack of common measure of Value.

Explanation:

In a barter system, goods and services are exchanged directly for other goods and services without the use of a common medium like money. Each item has its own value that must be matched with the value of another item to make a trade, and without a common measure, determining the value of disparate items in relation to each other can be highly subjective and inconsistent.