Barter is the system of trade, that was prevailing in the economy before the invention of money. Under barter as there was no money so there was no medium of exchange. The commodities and goods were traded directly for each other. A person can •jade the things which he has got in surplus for the things which he is in need of. However this system was very difficult and inconvenient due to which modern world e up barter and started using money.
Defining Barter:
Following are some important definitions of barter; According to R.H.Parker
"Barter is the direct exchange of goods and services without the use of money as either the means of payment or a unit of account"
According to S.Sloan
"Barter is the direct exchange of commodity or service for another without the use of money"
Inconveniences of Barter:
Following are the inconveniences of barter. 1. Double Coincidence of Wants: .In barter there was a need of double coincidence of wants. This means that if you have got surplus sugar with you and you need a leather jacket. You will have to find a man who has surplus leather jackets and who is also willing to give leather jacket to you far sugar. This was the basic difficulty and inefficiency of barter system.
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