Explain the meaning and characteristics of exchange.

Meaning of Exchange – In simple words, the transfer (exchange) of goods and services between two parties is called exchange. marshal According to, exchange of money between two parties Only legal and mutual transfer is called exchange.

Characteristics of Exchange- On the basis of appropriate definition the following characteristics of exchange are clear.

1- There should be two sides in the exchange action – one giving the thing and the other taking the thing.

2- There should be a transfer of money between the two parties. The yo yo transfer should be on the basis of mutual agreement.

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3- The transfer of funds should be entirely voluntary. There should be no pressure in it.

4- The transfer of funds should be legal.

Example-If Vakul takes a copy from his friend by paying ₹ 1. So this action will be called exchange, because there has been a transfer of money, and this transfer is voluntary, legal and reciprocal. But if Vakul threatens and snatches enough. So it will not be an exchange, because this transfer is not voluntary, legal and reciprocal.

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Requirements for exchange-

For the process of exchange the following things are necessary.

1- A person should have more quantity of the commodity than he needs.

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2-There should be at least two sides.

3-Both sides must have two or more objects.

4-Both sides must need each other’s items.

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5- The work of exchange should benefit both the parties.