BARTER SYSTEM MONETARY SYSTEM

43.  BARTER SYSTEM
MONETARY SYSTEM
1.      Meaning
Under this system, goods were exchanged for goods.
2.      Nature of exchange
     Under this system there is direct exchange
3.      Extent of Trade
Trade was restricted to a limited local area.

4.      Double Coincidence of wants
This system requires double coincidence of wants.

5.      Types of money
Commodities were commonly accepted as money. Examples are; animals, animals skin, food grains, shells, etc.

Under this system, goods and services are exchanged for money.

Under this system there is an indirect exchange.

Trade is spread over to a wider market area.


This system does not require double coincidence of wants.

There are basically four kinds of money i.e. Metallic coins, Paper currency notes, bank money and credit cards.