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. Bartering also has an advantage because even people without money can get something they need.

Below are three basic examples of bartering for goods and services, along with a common contemporary barter exchange….2. Bartering with Consumer Services

• Babysitting/daycare.
• Car repair work.
• Lawn care/landscaping.
• Computer repair.
• Small home improvement projects.
• Plumbing.
• Moving assistance.
• Tax preparation.

Barter is an act of trading goods or services between two or more parties without the use of money —or a monetary medium, such as a credit card. In essence, bartering involves the provision of one good or service by one party in return for another good or service from another party.

Translation for word Barter in Tagalog is : ipagpalit.

Barter in a Sentence ?

1. Since I do not have any money, I’m hoping I can barter my maid services in exchange for much-needed lawn care.
2. The homeless man held a sign that suggested he would barter his handyman services for a good meal.

Barter is characterized in Adam Smith’s “The Wealth of Nations” by a disparaging vocabulary: “haggling, swapping, dickering.” It has also been characterized as negative reciprocity, or “selfish profiteering.”

A barter system is an old method of exchange. Th is system has been used for centuries and long before money was invented. People exchanged services and goods for other services and goods in return. In ancient times, this system involved people in the same area, however today bartering is global.

It was never the only method of exchange of goods and services, mostly because it wasn’t able to sustain itself. Goods were exchanged for food, weapons, tea and spices among other things. Salt used to be traded in the barter system a lot in Mesopotamia and neighbouring areas.

Barter system had many difficulties which were faced by the people like lack of double coincidence of wants, lack of a common unit of value, difficulty of future payments or contractual payments and difficulty of storage of value and transfer of value.

The use of money better than a barter system because of the following reasons: A person holding money can easily exchange it for any commodity or service that he or she might want. Thus everyone prefers to receive payments in money and then exchange the money for things that they want.

The five main difficulties found in barter system are as follows: 1. Double Coincidence of Wants 2. Lack of a Standard Unit of Account 3. Impossibility of Subdivision of Goods 4.

Money overcomes the problem of barter system by replacing the C-C economy with monetary economy (where ‘C stands for commodity). (ii) When there was no money, it was difficult to give common unit of value to goods or commodities, but when money was evolved, it gave a common unit of value to every goods and services.

Barter system involves various difficulties and inconveniences which are discussed below:

• Double Coincidence of Wants:
• Absence of Common Measure of Value:
• Lack of Divisibility:
• The Problem of Storing Wealth:
• Difficulty of Deferred Payments:
• Problem of Transportation:

Drawbacks of Barter Systems:

• Lack of double coincidence of wants.
• Lack of a common measure of value.
• Indivisibility of certain goods.
• Difficulty in making deferred payments.
• Difficulty in storing value.

Some of the advantages of Barter system are:

• It is a simple system free from the complex problems of the modern monetary system.
• The problems of international trade, like foreign exchange crisis and adverse balance of payments, do not exist in the barter system.

The three reasons that lead to the replacement of barter system by money are : 1. Less possibility or lack of coincidence of wants or double coincidence of wants. Long trade was very expensive in barter system as goods and services were not easily mobile.

Features of barter system are as follow:

• Barter system is direct exchange of goods and services.
• It requires the double coincidence of wants.
• Barter system eliminates the use of money.
• It generally flourishes among uncivilized and backward communities.
• Barter system is possible where the area of exchange is limited.

Answer. Explanation: The main feature of barter system was to direct involvement of seller and buyer. When there is a transaction for another item or service in exchange for one item or service then it is called bartering.

Barter system had many drawbacks like lack of double coincidence of wants, lack of a common unit of value, difficulty of future payments or contractual payments and difficulty of storage of value and transfer of value.

Conditions of barter system: 1) Each party must have a surplus in their possession. 2) Personal or face to face meeting is essential. 3) Demand i.e wants of both the parties must coincide.

Money serves several functions: a medium of exchange, a unit of account, a store of value, and a standard of deferred payment.

Store of value

Therefore, power indicator is not a function of money.

Money serves as a medium of exchange, as a store of value, and as a unit of account.

Some of the major stages through which money has evolved are as follows: (i) Commodity Money (ii) Metallic Money (iii) Paper Money (iv) Credit Money (v) Plastic Money.