What is the difference between barter and exchange?

This topic contains 1 reply, has 1 voice, and was last updated by  Kiaria Yoshida 5 months ago.

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  • #1757

    Kiaria Yoshida
    Keymaster

    Barter is often referred to a trade of goods, in the absence of fiat money, say fish for grain, or the other way round. With currency dealers, the transaction involves a trade using different currencies, say between US$ and €. Thus, currency dealers deal with foreign exchange rates between currencies. Put more simply, barter is trade with goods, while exchange is trade between currencies.

    #1758

    Kiaria Yoshida
    Keymaster

    The primary difference between barter and currency systems is that the currency system uses an agreed-upon from of paper or coin money as an exchange system rather than directly trading goods and services through bartering.

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