Final answer:
The system where goods or services are directly exchanged for other goods or services without using money is called the barter system. It requires a double coincidence of wants and can be inefficient for complex transactions. Money was introduced as a more efficient medium of exchange to overcome these limitations.
Step-by-step explanation:
A system where you can offer goods or services and get trade credits to buy other goods and services that you need is called barter system. The barter system is an age-old method where people exchange one form of goods or services for another. This was the principal form of trade before money was invented, and it provided a simple way for people to get what they needed when cash was not in use. However, it had its limitations, such as requiring a double coincidence of wants, where two parties each possess something the other wants.
Money developed as a logical solution to the inefficiencies of bartering. It became the accepted medium of exchange because it allows people to trade goods and services indirectly. It also solves the problem of future contracts, as in the barter system, it was hard to agree on exchanges for goods that may not be readily available or perishable in the future.
Capitalism, on the other hand, is an economic system where there is private ownership of production means and an impetus to produce profit. Unlike bartering, capitalism is based on the use of money as the main form of exchange and creates wealth through the process of market transactions. In this system, profit-making is the main goal and driving force behind economic activity.