Question

what are the disadvantages of barter system​

Answer 1

mainly there would be 3 main disadvantages of barter system:-

1)lack of co-incidence

barter system is only possible when both people would have the things which is mutually needed. for eg:- one have cows and want cloths in exchange of cows. but it would be difficult to find a person who have clothes and only needs cow in exchange of that.

2)currency cannot be stored:-

in barter system currency can only be stored in forms of products. there is no particular currency.

3) lack of common measure

one who needs a thing in exchange would give its product in the lower price of its value there is no particular measure of any product

Hope it helps u........

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Answer 2

Answer:In Barter system, goods and services are exchanged for other goods and services. In this type of transaction, money does not play any role. For eg. Exchange old furniture with computer.Difficulties in Barter system:

Problems of double coincidence of wants.

Lack of common measure of value.

Difficulties in storage of goods.

Indivisibility of certain goods.

Problem of making differ payment.