What are the main features of barter system?

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Features of Barter System:-
The main features of barter system are as under: 

  1.  Barter system is direct exchange of goods and services.
  2. It requires the double coincidence of wants. 
  3. Barter system eliminates the use of money. 
  4. It generally flourishes among uncivilized and backward communities. 
  5. It is possible only if the wants of members of a community are very limited.
  6. Barter system is possible where the area of exchange is limited. 
  7. It is possible where the ratio of exchange between two commodities are determined. 
  8. It is now used in the modern foreign trade because of having good impact on balance of payment of trading countries.

Hope this helps!!

 

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1) double co-incidence of wants

2) exchange of goods for goods

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exchange of goods for goods

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  1. Barter system is direct exchange of goods and services.
  2. It requires the double coincidence of wants.
  3. Barter system eliminates the use of money.
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