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Question
Write short notes of the barter system.
Solution
It is the system of exchanging services and goods. For example, the potters got food grains in exchange for pots and vice versa.
RELATED QUESTIONS
What is meant by the double coincidence of wants? How does money overcome this problem?
How does money solve the problem of lack a common measure of value that existed under the barter system?
Briefly explain the following with reference to the barter system of exchange.
(i) Lack of common measure of value.
(ii) Lack of standard of deferred payments.
State any two demerits of the Barter system of exchange?
Fill in the blank
The system of exchanging things is known as _______.
Explanation of Keyword: Barter System
Fill in the blank
The system of exchanging services and goods is known as the ________ system.
Name the system in which the double coincidence of wants is an essential feature.
Explain the meaning of barter exchange by giving an example.
