There were many difficulties and inconveniences in the barter system, around the globe there was a need for accepted medium of exchange. With the passage of time many other types of money emerged for the purpose of exchange. Under commodity money, a large number of goods served as money. As metals were available from early times and were durable, portable and easily divisible therefore it got rapid popularity.
A system in which goods and services are directly exchanged for other goods without the use of money is called barter system. In other words it is the direct exchange of goods for goods. According to Prof Standy, barter economy is such an economy in which there is no use of a generally acceptable medium of exchange