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  • ICAR and TNAU E-Course Summarized

    Summarized Notes
  • The process of soluble compounds being washed away from the soil by water is called: ((MCAER 2014))

    Question: The process of soluble compounds being washed away from the soil by water is called: ((MCAER 2014))

    Options:

    Barter system
    Monetary system
    Credit system
    Debt system

    ✅Explanation: A barter system is a form of trade where goods or services are exchanged directly for other goods or services, without the use of money.

    📌Other Options Explanations:
    -B. A monetary system uses money as a medium of exchange.
    -C. A credit system allows individuals to purchase goods or services on credit, with the expectation of paying later.
    -D. A debt system involves one party owing money to another.

    🔑Key Points:

    ✏Barter System:
    -The barter system is an ancient method of trade where goods and services are exchanged directly for other goods and services without using a medium of exchange such as money.
    -This system relies on a mutual agreement between the trading parties on the value of the items being exchanged.
    -It is one of humanity's oldest forms of commerce, predating the invention of money or other standard mediums of exchange.

    🛑Additional Information:

    ✏2) Exchange of goods with money:
    -This refers to a monetary system where goods are bought and sold using money as the medium of exchange.
    -Money facilitates transactions by providing a common measure of value.

    ✏3) Exchange of goods with gold:
    -This could be a form of bartering if gold is directly exchanged for goods or services without using it as a standardized monetary system.
    -Historically, gold and other precious metals have been used as a form of currency.

    ✏4) Exchange of goods with animals:
    -While this could be considered a type of barter, it is more specific and less common than the overall direct exchange of goods and services.
    -Barter systems often face challenges such as the double coincidence of wants, where each party must have something the other wants.
    -The system can be inefficient for large or complex economies, leading to the development of money as a universal medium of exchange.

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