Question

Barter can't function well

Answer 1

Because of lack of double coincidence

Answer 2

"Bartering is the act of trading one good or service for another good without using a medium of exchange such as money".

• Money was not used in the early times of . Exchanges were few since each families were self- sufficient.
• Whatever exchanges were there, they took the form of barter system, that is, exchange of goods for the other goods.
• Many difficulties were faced by the people in the barter economy.

The five main difficulties faced in barter system are as follows:

1. Double Coincidence of Wants

2. The Lack of a Standard Unit of Account

3. Impossibility of Subdivision of Goods

4. Lack of Information

5. Production of Large and Very Costly Goods is not Feasible.

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