Question

Give any three Limitations of the Barter system.
(Class 10 SSt Sample Question Paper)

Answer 1

SOLUTION:

A system of exchange in which goods and services are directly traded for Other goods and services without money is known as Barter system.

The three limitations of the barter system are as follows:

1.There are many products which cannot be divided.

2.Deciding the value of goods is difficult.e.g 1 kg wheat for a pair shirt while Shirt owner can demand 2 kg wheat for that shirt.

3. Double coincidence of wants is necessary. It means that Both parties have to agree to sell and buy each others commodities.e.g if a farmer wants to sell his wheat in exchange of shirt he has to find a shirt owner who wants to exchange shirt for wheat.

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Answer 2

1) Double coincidence of wants is a must for barter system.
2) It had no common medium of exchange
3)There was very less or no choice offered to the consumer in barter system

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