what is the function of barter system?

sda

I don't care

gkmtduikj
 

.

 

• Direct barter doesn't require payment in money (when money is in short supply) hence will be utilized when there is little information about the credit worthiness of trade partners or there is a lack of trust.
• The poor cannot afford to store their small supply of wealth in money, especially in situations where money devalues quickly (hyperinflation).^[11]

A barter economy is a cashless economic system in which services and goods are traded at negotiated rates. "The direct exchange of surplus commodity for commodity with another person without the use of money is termed as barter in economics."

The main features of barter system are as under: 
1. Barter system is direct exchange of goods and services.

2. It requires the double coincidence of wants.

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