Definitions [2]
Definition: Barter System
“The direct exchange of economic goods, one for another.” — Chandler
Definitions: Reserve Bank of India (RBI)
- Dr. M. H. de Kock: “Central bank is one which constitutes the apex of the monetary and banking structure of the country.”
- Prof. W. A. Shaw: “Central bank is a bank which controls credit.”
Key Points
Key Points: Barter System
The barter system’s limitations—double coincidence of wants, no standard value, storage issues, indivisibility, and deferred payments—led to the invention of money, which streamlined trade and economic growth.
