Explain barter or exchange system with the help of an example. – InterviewSolution

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1.	Explain barter or exchange system with the help of an example.
Answer» Mohan produces wheat and he has more wheat than he needs. Similarly, Sohan produces cloth and he has more cloth than he needs for himself, then when the need arises, both persons can exchange wheat and cloth and fulfil their individual needs, i.e. Mohan will buy cloth by selling wheat and Sohan will buy wheat by selling cloth. This is what barter system means.

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