ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -A barter economy is a cashless economic system in which services and goods are traded at negotiated rates. Barter-based economies are one of the earliest, predating monetary systems and even recorded history. People can successfully use barter in many almost any field.

Detailed explanation-2: -Barter is an act of trading goods or services between two or more parties without the use of money-or a monetary medium, such as a credit card. In essence, bartering involves the provision of one good or service by one party in return for another good or service from another party.

Detailed explanation-3: -Currency System: An Overview. The primary difference between barter and currency systems is that a currency system uses an agreed-upon form of paper or coin money as an exchange system rather than directly trading goods and services through bartering.

Detailed explanation-4: -The exchange of goods in return for other goods or services is called Barter System. Q. Exchanging goods or services for other goods or services without using money is called the system. Q.

Detailed explanation-5: -In a Barter system, only goods and services are exchanged without any involvement of money. Hence exchanging a cup of oil for a cup of pulses is an example of barter system where goods are exchanged . This is an example of Bartering.