InvestorQ : what is barter system
nazir ah made post

what is barter system

Mary Joseph answered.
1 year ago
It is a conventional method of exchange. This system has been used by our ancestors centuries ago and long before money came into existence.

Under this system, people exchanged services and goods for other services and goods. There was no money at that time, so goods were valued based on the need and have basis. For example, if one person has rice and he wanted some sugar, he has to find someone with sugar. There were many drawbacks to this system because you might not always find someone with the same products as you need and with the same product/service need as you are willing to exchange.

However, this problem was addressed later, as there were people who acted like a bank. Say, they take products from one person and deliver them to the one in need and keep some of it for themselves as commission.