Economy, asked by Maitbo, 1 year ago

Information on system practiced in exchanging their goods

Answers

Answered by kartikshimar195
27

In trade, barter (derived from baretor) is a system of exchange where participants in a transaction directly exchange goods or services for other goods or services without using a medium of exchange, such as money. Economists distinguish barter from gift economies in many ways; barter, for example, features immediate reciprocal exchange, not delayed in time. Barter usually takes place on a bilateral basis, but may be multilateral . In most developed countries, barter usually only exists parallel to monetary systems to a very limited extent. Market actors use barter as a replacement for money as the method of exchange in times of monetary crisis, such as when currency becomes unstable (e.g., hyperinflation or a deflationary spiral) or simply unavailable for conducting commerce.

Answered by gratefuljarette
3

An old method of exchange is the barter system.

Explanation:

  • This system was used for centuries, and long before the inventing of money. In exchange citizens were trading services and goods for other services and goods. The scheme used to involve people in the same region in ancient times but today's bartering is regional.
  • Barter is an exchange system in which services or goods are exchanged directly for other goods or services without the use of an exchange medium, such as money.

Learn more about barter system

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