ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -A barter system is an old method of exchange. This system has been used for centuries and long before money was invented. People exchanged services and goods for other services and goods in return. The value of bartering items can be negotiated with the other party.

Detailed explanation-2: -In ancient times, trade began as a barter system in which people exchanged one object for another. Prehistoric humans traded animal skins or services for food. Over time, coins and currencies began to emerge. Some primitive societies used shells or pearls as currency.

Detailed explanation-3: -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-4: -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-5: -Before that time, historians generally agree that a system of bartering was likely used. Bartering is a direct trade of goods and services; for example, a farmer may exchange a bushel of wheat for a pair of shoes from a shoemaker.