What is the barter system?

The barter system is fundamentally defined as a method of exchange where individuals trade goods and services directly without the intermediary of money. This system relies on the concept of mutual benefit, as each party has something the other wants, facilitating an exchange that satisfies both parties' needs. The need for a double coincidence of wants is crucial in barter; each party must have what the other desires at the same time.

The other options describe different forms of transactions that involve currency, credit, or specific service exchanges, which do not encompass the essence of bartering. Online trading and transactions involving credit or loans represent modern methods of commerce that utilize money or digital currencies, diverging from the fundamental principles of barter. Thus, the identification of the barter system purely as a no-money exchange of goods fits its historical and economic context.