what is barter system???
in breif
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Explanation:
A barter system is an old method of exchange. Th is system has been used for centuries and long before money was invented. People exchanged services and goods for other services and goods in return. ... The value of bartering items can be negotiated with the other party.
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Under barter system, the goods and services were directly exchanged for goods and services, without the use of money. 'Double Coincidence of wants' is an essential element of barter system.
However, thsi system is no longer in practice due to the following reasons-
It is time consuming.
There is no proper system for evaluation of goods.
Certain goods could not be easily divided.
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