Economics (NTSE/Olympiad)  

3. Money and Credit

Barter System

The system of exchanging goods is known as barter system.
Limitation of Barter system :
1. Two people with different types of needs and goods must be there to satisfy each other’s needs.
2. There are many products which cannot be divided.
3. Valuation of goods is very difficult.
4. It was time consuming.

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