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Barter - Financial definition

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Concise definition of the term barter

In a barter system, people exchange goods or services of relatively equivalent value without using money.

Comprehensive definition of the term barter

Limitations in a barter system:

Lack of universality: In order to obtain something you want, you need to have something that the other person wants.

No store of value: The exchange needs to take place simultaneously, but maybe one of the two trade partners doesn’t need the other one’s goods at that time.

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