Question

drawback of barter system

Answer 1

Disadvantage # 1. Lack of Double Coincidence of Wants: The functioning of the barter system requires a double coincidence of wants on the part of those who want to exchange goods or services. ... Consequently, if the double coincidence of wants is not matched exactly, no trade is possible under barter.

Answer 2

barter system.

It is one of the most basic and significant inventions of mankind. Before money came into use, exchange took place through barter system, i.e., goods were exchanged for goods. Barter means direct exchange of goods. In other words, barter refers to exchanging of goods without the use of money.

Disadvantage of it.

lack of a standard unit of account with which to measure values of different goods and services made exchange or trade difficult. 3. Impossibility of Subdivision of Goods: Another problem faced under the barter system for exchange of goods was impossibility of subdivision of goods without loss of their value.