What is ‘Barter’? Explain ‘standard of deferred payment’ function of money.
Solution:
Barter is the system of exchange of goods to goods without using money. For example: If one person needs wheat and another needs pulses they both can exchange goods with each other without using money.
Money act as a deferred payment, means money is a standard for payment that are to be made in the future. Money can be used for payment that are not done immediately.
Barter is the system of exchange of goods to goods without using money. For example: If one person needs wheat and another needs pulses they both can exchange goods with each other without using money.
Money act as a deferred payment, means money is a standard for payment that are to be made in the future. Money can be used for payment that are not done immediately.