BANKING AFFAIRS

Detailed explanation-1: -Countries that use this type of economic system are often rural and farm-based. Also known as a subsistence economy, a traditional economy is defined by bartering and trading. A little surplus is produced and if any excess goods are made, they are typically given to a ruling authority or landowner.

Detailed explanation-2: -A traditional economy is a basic economic system where customs and traditions are the elements that determine the way trade and commerce are performed. It is a self-sufficient economy where the community engages in different activities to produce goods or services that are required by the rest of the community.

Detailed explanation-3: -Traditional economies rely on farming, fishing, hunting, gathering, or some combination of these activities.

Detailed explanation-4: -Traditional Economy Examples Identifying modern traditional economies can be difficult. Many countries classified as communist, capitalist, or socialist based on their economic systems have isolated pockets inside them that function as traditional economies.