How did the terms of trade change over time for First Nations communities?

• A. They began to favor Europeans, demanding more from First Nations partners with little in return
• B. They became more balanced
• C. They completely stopped trading
• D. They shifted to barter only

Answer: (D)

The main idea here is how exchange patterns between First Nations and European traders evolved as contact deepened. Early on, trade often happened through direct exchanges of furs for European goods—a straightforward barter system. As colonial networks grew, currency and credit entered some trades, but cash remained scarce in many Indigenous communities, and traders frequently relied on bartered deals to move goods. Over time, these patterns can shift toward more barter-based exchanges, rather than relying on cash or credit-heavy arrangements, especially in remote regions where money circulation was limited. So, shifting to barter-only reflects how the terms of trade changed in practice as people navigated currency constraints and the changing dynamics of the fur trade.