Transaction
Topic: Money: From Barter to Digital Currency · NCERT: Class 7, Ch 11 "From Barter to Money"
Meaning
A transaction is a piece of business done between people, especially buying or selling. Every time goods, services or money change hands, a transaction takes place. Money exists to make transactions easy. Without money, every transaction would need barter, which is a direct swap of goods. People also hold money mainly so that they can pay for their day-to-day transactions.
Example
A customer buys fruit from a cart and pays by scanning the seller's QR code. The money moves straight into the seller's bank account, and that sale is one transaction. Swapping a spare eraser for a classmate's spare pencil is also a transaction, but it is done through barter.
Don't confuse with
- Barter: a transaction is any exchange. Barter is one way of doing a transaction: goods are swapped directly for goods, without money.