ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -Long before money was invented, when people needed things they did not have, they exchanged their goods and services with others for their goods and services in return . We call it the Barter system.

Detailed explanation-2: -In early civilizations, common agreed-upon goods, such as animal skins or salt, served as a currency that individuals could exchange for goods and services. As currency systems progressed over time, coins and paper notes evolved to support their economies and to encourage trade within the region.

Detailed explanation-3: -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-4: -Goods were exchanged for food, tea, weapons, and spices. At times, human skulls were used as well. Salt was another popular item exchanged.

Detailed explanation-5: -reciprocation. haggling. dickering. back-and-forth. horse trade.