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Barter

The exchange of good and services can take place directly, so that no tokens of any sort are used.

The method is typically still in use by relatively primitive peoples and cultures, and is the first method of exchange that takes place when exchange of labour is instigated. Barter therefore takes place mostly in eras of primitive tribal life.

The advantages of this system, as we will see when we browse the problems that accompany the introduction of third parties as occurs with tokens, is that no third party is involved, and the exchange is private, between only the two traders concerned and is free from interference.

 

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