Meaning of Barter System:
Barter system is a system of exchanging goods or services for other goods or services without using a medium of exchange, such as money. For example, a farmer cultivating wheat would exchange wheat to get rice or clothes, teachers used to get food in exchange for knowledge.
Limitations of Barter System:
- Issue of mutual adjustment of wants
- Difficulty in storing value
- Problem of measuring value and
- Lack of common standard of measurement of value.
