Barter system

Question 1

What is the barter system

Answer 1

Barter is a system of exchanging goods and services for another without using money

Question 2

Advantages of barter

Answer 2

1. Trading could take place without the use of money.
2. Persons were able to aquire the goods that they could not produce themselves.
3. products could be traded, therefore preventing wastage of goods.

Question 3

Dis advantages of barter

Answer 3

1. Double coincidence of wants .
2. dificulty in deciding the rate of exchange or the right quantity acceptable in exchange for other items.
3. Dificulty in storing wealth -some goods were perishable.