Distinguish between: Barter Economy and Money Economy.
Distinguish between:
Barter Economy and Money Economy.
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| Barter Economy | Money Economy |
| (i) Barter economy is a moneyless economy where goods are exchanged for goods. | (i) Money economy is one where money is commonly used as a medium of exchange. |
| (ii) In this economy exchange of goods for goods is direct. | (ii) In this economy exchange of goods is indirect i.e. through money. |
| (iii) Exchange of transactions is few and difficult. | (iii) Exchange of transactions is many and smooth. |
| (iv) Barter economies are rarely found. | (iv) Almost all economics in the world are money economies. |
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