Question

explain barter system?
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Answer 1

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Barter System:

It is system in which to get something or for trading, we exchanged goods or things instead of money.

$\green{ hope \: it \: helps}$

Answer 2

Barter System

Barter is an oldest system of trading. It includes exchange of goods between two parties without including money.

• In ancient times, when money was not invented, people used to exchange goods for goods, it is called barter system.

• In this system, both the parties should be agree with their exchanged goods, while in most of the cases, barter system didn't work because of different wants or needs.

• This method, reduced the cash outlay.

Difficulties occured in barter system:-

• The problem of storage of wealth.

• Problems in transportation.

• Double coincidence of different wants.

• Difficulties due to lack of divisibilty.