In the barter system, goods or services are exchanged directly for other goods or services without the use of a medium of exchange, such as money.
It is the oldest form of commerce, dating back to a time before hard currency even existed.
For example, a farmer trades eggs and milk to a baker for bread and cakes. A carpenter trades carpentry services to a plumber for plumbing services.
Centuries later, the barter system evolved into money because it was a more efficient way to facilitate trade.
Barter is still used today, but it is less common than it was in the past. It is often used in small communities or between businesses.
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