Question

drawbacks of barter system

Answer 1

Disadvantage # 1. Lack of Double Coincidence of Wants: ...Disadvantage # 2. Lack of a Common Measure of Value: ...Disadvantage # 3. Indivisibility of Certain Goods: ...Disadvantage # 4. Difficulty in Storing Value: ...Disadvantage # 5. Difficulty in Making Deferred Payments: ...

Answer 2

Answer:

barter system : is a system in which goods are exchanged for goods .

Drawbacks :

1) Lack of purchasing power accumulation .

2) Lack of price gauge : The biggest difficulty is to determine the value of the commodity in the barter system. It lacks a well known value .

3) Difficulty in commodity division .

4) Double coincidence of wants .

5) Difficulty of future payments .