Question

"Difficulties in barter system"

Answer 1

Answer:

The five main difficulties found in barter system are as follows: 1. Double Coincidence of Wants 2. Lack of a Standard Unit of Account 3. Impossibility of Subdivision of Goods 4.

Answer 2

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Q. Difficulties in barter system .

=> Barter system had many difficulties which were faced by the people like lack of double coincidence of wants, lack of a common unit of value, difficulty of future payments or contractual payments and difficulty of storage of value and transfer of value.

* barter, exchange was possible ony if wants of two parties were coincided with each other. Otherwise, it was next to possible. The use of money has solved this problem, because it acts like an accepted medium of exchange. So, money has removed the inconvenience of double coincidence of want .

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Q. What is barter system with example?

=> Barter is an alternative method of trading where goods and services are exchanged directly for one another without using money as an intermediary .

Q.What are the three disadvantages of barter system?

=> Drawbacks of Barter Systems:

• Lack of double coincidence of wants.
• Lack of a common measure of value.
• Indivisibility of certain goods.
• Difficulty in making deferred payments.
• Difficulty in storing value

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