Agree or disagree state with reason.
There are no difficulties in barter system
Answers
Answer:
Barter system in the current economic system is not advisable and agreeable.
Explanation:
Mesopotamian tribes invented the system of exchange of goods and services for other kinds of goods and services in return. Later it was adopted by Phoenicians. This barter system had been used for centuries before invention of money. The bartering value of the goods and services are negotiated with the other party.
Consider A wants sugar in exchange of rice, but B does not want sugar but has rice. So, A has to exchange rice for any desired goods of B to someone else and then gets the sugar. This takes a double effort for A to exchange his goods.
Moreover, continuous production of physical goods may lead to the lack of storage, transportation and in some cases the goods may expire. During the natural calamities, there will be more wastage of finished goods. If a bull seller requires 1 kg of flour, he has to give one bull in exchange of flour, this situation reduces the value of the goods. Therefore, Barter system is not agreeable.