Explain barter system with an example.
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Answers
Answer:
As you all know that today we buy things by giving money to the product in return or we take money by someone to give them a product. The whole world is running with money for the basic needs of life or for the needs and wants of their lifestyle. But it was not the same as today like how we buy goods using money. There was a system called barter system. Let me tell you in detail about it with an easy example.
Barter system :
Barter is an alternative method of trading where goods and services are exchanged directly for one another without using money as an intermediary.
Example, a farmer may exchange a bushel of wheat for a pair of shoes from a shoemaker.
Or if a one farmer is growing rice and the other is growing wheat they exchange them for some amount by giving the same amount of grains without using money.
I hope you understood what is barter system.
Answer:
As you all know that today we buy things by giving money to the product in return or we take money by someone to give them a product. The whole world is running with money for the basic needs of life or for the needs and wants of their lifestyle. But it was not the same as today like how we buy goods using money. There was a system called barter system. Let me tell you in detail about it with an easy example.
Barter system :
Barter is an alternative method of trading where goods and services are exchanged directly for one another without using money as an intermediary.
Example, a farmer may exchange a bushel of wheat for a pair of shoes from a shoemaker.
Or if a one farmer is growing rice and the other is growing wheat they exchange them for some amount by giving the same amount of grains without using money.
I hope you understood what is barter system.