Which of the following is NOT an aid or auxiliary to trade?

The correct answer is Hoarding.

Key Points

• Hoarding is the purchase and warehousing of large quantities of a commodity by a speculator with the intent of benefiting from future price increases.
• Trade or exchange of goods involves several difficulties, which are removed by auxiliaries or supplementary supports known as Aids to Trade.
• Aids to trade include Transport, Communication, Warehousing, Banking, Insurance, Advertising, Salesmanship, Mercantile agents, Trade promotion organizations in a country and Global organizations for international trade. These important auxiliaries ensure a smooth flow of goods from producers to the consumers

Additional Information

• Insurance is a means of protection from financial loss in which, in exchange for a fee, a party agrees to compensate another party in the event of a certain loss, damage, or injury. It is a form of risk management, primarily used to hedge against the risk of a contingent or uncertain loss.
• Warehousing is when you purchase goods from a manufacturer and store them before they are shipped to another location for fulfilment. You may store these goods in a warehouse, spare room, or other facilities. This all depends on how much stock you have, and how big your business is
• Transportation is the movement of goods and persons from place to place and the various means by which such movement is accomplished.
• Communication means transmitting or exchange of information from one person to another.
• Banking solves the problem of finance. Businessmen receive money and also pay money in large amounts. It is risky to carry a large amount of cash from one place to another. Here comes Banking as a solution. Banking and financial institutions solve the problem of payment and facilitate a smooth exchange between buyer and selle