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BARTER ECONOMY: An economy that trades goods and services using barter exchanges rather than money. Barter economies originally predated the invention of money, emerging out the early stage of self-sufficiency before giving way to the use of commodity money. However, barter economies occasionally surface in modern times, especially when the public loses confidence in the monetary unit during a government crises or a period of hyperinflation.

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FREE RESOURCE

A resource that can be used to produce consumer-satisfying goods and services without imposing an opportunity cost on society by preventing the production or consumption of other consumer-satisfying goods or services. Production using free resources often results in free goods.

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Today, you are likely to spend a great deal of time watching the shopping channel hoping to buy either a small palm tree that will fit on your coffee table or several magazines on fashion design. Be on the lookout for small children selling products door-to-door.
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There were no banks in colonial America before the U.S. Revolutionary War. Anyone seeking a loan did so from another individual.
"The shifts of fortune test the reliability of friends. "

-- Marcus Tullius Cicero, Roman statesman

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American Bankers Association, Associate in Business Administration
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