meaning of barter
The direct exchange of one commodity to another is called ‘barter exchange’. pro jevens in the words of,“Barter is the exchange of more essential commodities with relatively less essential commodities.”
1- Lack of double coincidence-
commodity Exchange In the system man searches for such persons. Who takes their spare item and gives him the desired thing for example Nakula has a book. He wants to take two pens instead. So he has to find such person who can see the book. I want to give a pen it is a difficult task.
In this, his time and energy will be wasted, it may also happen that he does not get such a person. In a developed economy in which lakhs of people exchange goods and services in a day, it is almost impossible to meet such people.
2-Lack of valuation-
It was very difficult to fix the barter system and the rate of exchange. The reason for this was the continuous filling of the number of commodities, for example, how much cloth, how much wheat, how much land should be given in exchange for a cow or it was very difficult to remember.
3-value of accumulation-
Most of the goods perish quickly. There is a lack of liquidity.
4- Difficulty of relocation-
In ancient times, due to the lack of means of transport, there was a lot of harvesting in the transfer of goods. If a person was known from one place to another then it was not possible for him to carry his wealth along.
5-Future Payment Facility-
Today, we buy and sell many goods on the basis of making payments in the future, but this was not possible in the barter system, in that the child of one commodity had to be given at the same time and then in case of exchange, there was a credit transaction. was not prevalent.
1. State the meaning of barter.
The direct exchange of one commodity to another is called ‘barter exchange’. In the words of Prof Jevons, “Barter is the exchange of more essential goods with relatively less essential commodities.”
Read in Hindi: What is barter?