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Monetary Economics: Barter System, Definition, Function and Evolution of Money – Civilsdaily
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What Is the Difference Between Barter and Currency Systems?
EduRev is a knowledge-sharing community that depends on everyone being able to pitch in when they know something. What do I get? For Your Perfect Score in Class 7. The Best you need at One Place. Start Your Infinity Experience. Follow Us. Muskan Preet. Boyarevula Varsha. Jagjit Gill. Siddhi Mundada. Hyper inflation is extreme examples of inflation where prices skyrocket, and the value of money becomes worthless. In these cases, people often resort to bartering goods directly.
Barter (or Bartering)
For example, in Germany money became worthless. To barter means to trade goods directly rather than through the medium of money.
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An example of a barter exchange may involve swapping a bag of nuts for some fruit or meat. Limitations of a Barter Economy Becomes difficult to produce specialised goods only wanted by a proportion of the population. Basics of life — food, shelter clothes tend to work as barter goods, as most people will have need for wheat, but for more specialised goods, only some of the population will want them.