Question

Explain barter or exchange system with the help of an example.

Answer 1

Answer:

Explanation:

In this type of system,there is an exchange between good.

If one buys an article,then instead of paying money,he has to give another product

Answer 2

Answer:

HERE IS YOUR ANSWER DEAR..

Explanation:

1. Barter System: In a barter system where goods are directly exchanged without the use of money, double coincidence of wants is an essential feature. When both parties have to agree to sell, buy and ready to exchange each other’s commodities are called double coincidence of wants.

2. Example: A Shoe seller sells his shoe in exchange of wheat. In this case, both parties i.e., shoe seller and wheat producers have to agree to sell and buy each other’s commodities. This is barter system and this system requires double coincidence of want.