Question

HEY MATES ♥️
Explain the working of Bartar System!! ​

Answer 1

BARTER SYSTEM :

• Prior to the invention of money there was a system called Barter System.

• In this system, one good is exchanged for another good.

• In those days every one could not produce whole goods hence, there should be need of exchanging the goods.

Difficulties in Barter System :

• In Barter System there is no proper measure of value.

• As, the valuable goods are exchanged with small goods.

• There is no divisibility of goods. As, we cannot divide some goods.

• There is lack of store of value in Barter System.

• As, we cannot store the value of some goods. Because some goods are perishable.

• In Barter System we cannot pay in future for the present transactions.

Thus, to overcome the above problems money was invented.

Answer 2

Answer:

exchange of goods is called barter system