ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -Most countries now use a monetary currency system, but individuals can still barter or adopt another agreed-upon currency system. These alternatives may be used in addition to or as a replacement for the national monetary system in place.

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: -1) Money works as a store of value. 2) Any commodity cannot act as money. 3) Barter System had many difficulties. 4) Money is the basis of credit.

Detailed explanation-4: -Today, bartering has made a considerable comeback using more sophisticated techniques to aid in trading, for instance, the Internet. In ancient times, this involved system people in the same area; however, today bartering is global. The value of bartering items is negotiable with the other party.

Detailed explanation-5: -The invention of money led to the end of the barter system. It was a system which was used before the invention of the money.