Question
Barter Economy and Money Economy.

Answer

Barter EconomyMoney 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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