Gopal and Deepu were brothers who were very exited because their uncle was coming for dinner.He always brought gifts for them, and this time he gave Gopal two bars of milk chocolate, while Deepu goat two packets of potato chips. After he had left, Gopal said, " Deepu, I will give you one bar of milk chocolate if you will give me a packet of potato chips in return. "Deepu agreed, and soon both the boys were having a feast of bar of chocolate each, followed by packets of potato chips each, without having to pay anything. Gopal did not have to buy any chips, and Deepu did not have to buy any chocolate. Now, wasn't that smart of them?
This system of exchanging goods is known as the barter system. Long before our ancestors invented money, they used the barter system to get what they needed. A farmer would exchange bundles of rice for a cow that another farmer had. In this way, both farmer would have all the rice and milk they needed, without any money having changed hands. A hunter might exchange animal skins for the fish that a fisherman had, or a weaver might exchange cloth for bread from a baker. It was all a matter of giving away whatever extra you had, in return from something you needed.
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