Question

What is barter system? What is limitations? Explain with examples?​

Answer 1

Answer:

A barter system is an old method exchange. This system has been used for centuries and long before money was invented. People exchange services and goods in return.

Lack of Double Coincidence of wants: Barter system can work only when both buyer and seller are ready to exchange each other's goods.

Example: A can exchange goods with B only when A has what B wants .