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43. BARTER SYSTEM
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MONETARY SYSTEM
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1.
Meaning
Under
this system, goods were exchanged for goods.
2.
Nature of exchange
Under this system there is direct exchange
3.
Extent of Trade
Trade was restricted to a limited local
area.
4.
Double Coincidence
of wants
This system requires double coincidence of wants.
5.
Types of money
Commodities
were commonly accepted as money. Examples are; animals, animals skin, food
grains, shells, etc.
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Under this system, goods and services are
exchanged for money.
Under this system there is an indirect
exchange.
Trade is spread over to a wider market
area.
This system does not require double
coincidence of wants.
There are basically four kinds of money
i.e. Metallic coins, Paper currency notes, bank money and credit cards.
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BARTER SYSTEM MONETARY SYSTEM
