What is meant by the term 'barter'?
Barter is the direct exchange of goods and services without the use of money.
The barter system first existed in a money-less economy and so it is called a money-less transaction.
The barter system has certain advantages and disadvantages. We will now begin to explore these.
ADVANTAGES OF THE BARTER SYSTEM
1.People could get what they didnot have or could not produce.
2.Exchange could take place without the use of money.
DISADVANTAGES OF THE BARTER SYSTEM
1.There was indivisibility
2.Lack of storage facilities lead to spoilage.
