Question

Write short notes on the following: 1. The barter system

Answer 1

Barter system of exchange was the system of exchange in which goods were exchange for goods. This system was in practice in ancient times when there was no medium of exchange there was no money that they can exchanged so because of that goods were exchange with goods..

There were many drawbacks of this system as because as there was no money so because of that there was no fixed value of anything. For example if you want to sell your wheat and in exchange you get bajra then you are in loss a because as bajra is way cheaper than rice than you will not get the actual value of your crop(Wheat). So to overcome this money was declared as medium of exchange so that you will get the actual value of your good…