What are the limitations of barter system?????
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Lack of Double Coincidence of Wants
Lack of a Common Measure of Value
Indivisibility of Certain Goods
Difficulty in Storing Value
Difficulty in Making Deferred Payments
Lack of Specialisation
Lack of a Common Measure of Value
Indivisibility of Certain Goods
Difficulty in Storing Value
Difficulty in Making Deferred Payments
Lack of Specialisation
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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.
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