BARTER

SYSTEM
Content

1. What is a barter system?

2. History of barter system?
3. What is called barter system?
4. Why is barter system important?
5. Limitations of barter system?
6. Problems of barter system?
7. Why was barter system discontinued?
8. What replaced the battery system?
What is a barter system

It is the system where goods are directly

exchanged without use of money double
coincidence of wants is an essential
feature.
History of barter System
What is called barter system

A barter system is an old method of

exchange.This system has been used for
centuries and long before money was
invented people exchanged services and
goods for other services and goods in return.
Why is barter system important
Bartering is the process of trading services or
goods between two parties without using
money in the transaction.when people barter,
everyone benefits because they receive items
or services they need or want.
Limitations of barter system

Lack of double coincidence of wants

Difficulty of storing value.
Differed payments are difficult.
Some goods are invisible.
Problems of barter system
Why was barter system discontinued

 It was never the only method of exchange of goods

and services mostly because it wasn’t able to
sustain itself.At first, people used to barter
livestock....The invention of money didn’t end the
barter system,it just made it more streamlined.
What replaced the barter system
Money
Thank you

Done by : M.Mathivanan.
Std - 7