Question

d )Explain the demerits of Barter system.
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Answer 1

Answer:

The disadvantages of barter system were Goods were limited, Need for Double Coincidence of wants, Difficulty of Division and Sub - division of Goods, Difficulty in calculating the value of goods, Difficulty in the case of services and Difficulty in Strong Value.

Drawbacks of Barter Systems:

1.Lack of double coincidence of wants.

2.Lack of a common measure of value.

3.Indivisibility of certain goods.

4.Difficulty in making deferred payments.

5.Difficulty in storing value.

Due to lack of money, bartering became popular in the 1930s during the Great Depression. It was used to obtain food and various other services. It was done through groups or between people who acted similar to banks. If any items were sold, the owner would receive credit and the buyer's account would be debited.

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Answer 2

Explanation:

the disadvantages of barter system is the goods were limited ,needs of double coincidence of wants , difficulty of division and sub division of goods, difficult in calculating the value of goods , difficulties in the case of services and difficulty in strong value