Hey there!
Bartering was an early way that people exchanged goods.
☆Explanation:
- In earlier times money was not there,so people used to follow a system in exchange of goods. This system was known as barter system.
- In barter system commodities were exchanged against commodities.
¤ Example:-
Let's imagine a situation between "A" and "B". Suppose "A" wants rice and have sugar. On the other hand "B" has rice and he wants sugar. So,there will be exchange between "A" and "B" where "A" will give sugar to "B" and "B" will give rice to "A".
This procedure of exchanging goods is known as barter system.
Hope it helps