NCERT · Class 10 · Social Science · Economics: Money and CreditWhat is meant by barter system?

The barter system refers to a method of exchange where goods are directly traded for other goods without the use of money. In this system, the double coincidence of wants is an essential feature, meaning that both parties must desire what the other has to offer. However, this system faces major limitations, such as the difficulty of storing value and the lack of a common measure of value, which eventually led to the invention and widespread adoption of modern currency.