Question

Q.what is bartar system ?
Q.what were the limitations of bartar system?
mt kro ruk jao pleech╥﹏╥╥﹏╥╥﹏╥╥﹏╥

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Answer 1

Explanation:

Barter system was used in ancient times for the exchange goods. It was a system where one commodity, product or some goods was exchanged for another.

The limitations of the barter system are:

1. The system lacked from the double coincidence of wants. This means two individuals should be complementing and must be ready to compromise the goods for each other in their requirement in order for the exchange to happen. 

2. There was a lack of common measurement i.e. value of the good of one item was not always equal to the other item being exchanged for.

3. It was tedious to store the items that were obtained from exchange for future exchanges, as most of the items perished.

4. It was difficult to make future payments and contractual payments.

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