BAFT Certificate in Principles of Payments (CertPAY) 2025 – 400 Free Practice Questions to Pass the Exam

The risk associated with the barter system primarily revolves around the transport of goods and the potential for spoilage. In a barter transaction, individuals exchange goods directly without using money, which means that physical items must often be moved from one party to another. If the goods being exchanged are perishable items, such as food, there is a significant risk that they could spoil during transport. This spoilage not only affects the value of the goods but can result in losses for both parties involved in the transaction, making it a particular vulnerability of the barter system.

The other options do not accurately reflect the inherent risks of the barter system. For instance, the idea that goods usually have consistent valuations is misleading, as valuations can vary significantly depending on individual needs and circumstances. Stating that no transport is needed for bartered goods contradicts the fundamental nature of barter, which typically requires the goods to be traded physically. Additionally, not all goods are easily interchangeable, as the unique characteristics and values of different items can complicate barter transactions.