Question

a) state any
?
there limitations of barter system​

Answer 1

Explanation:

The major limitations of Barter Exchange are:

Lack of Double Coincidence of Wants: Barter system can work only when both buyer and seller are ready to exchange each other's goods. ...

Lack of Common Measure of Value: ADVERTISEMENTS: ...

Lack of Standard of Deferred Payment: ...

Lack of Store of Value:

Answer 2

The drawbacks of the barter system are listed below:

1. The system lacked from the double coincidence of wants. This means two individuals should be complementing and must be ready to compromise the goods for each other in their requirement in order for the exchange to happen. For e.g jaggery for sugar

2. There was a lack of common measurement i.e. value of the good of one item was not always equal to the other item being exchanged for. For e.g exchange of rice for cow.

3. It was tedious to store the items that were obtained from exchange for future exchanges, as most of the items perished.

4. It was difficult to make future payments and contractual payments.

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