Question

what is barter system ? explain its limitation

Answer 1

Exchange of goods for other goods is called barter system

It is difficult to store the value of good in barter system.
It is difficult to store the moneyy value

Answer 2

What is barter system ? explain its limitation

Explanation:

• The barer system is a form of trade and is a system of exchange and was the participant in a transaction directly used to exchange goods and services for the other goods and services and used a medium of exchange mediums such as money.

• The system had many disadvantages that were considered to be barriers in terms of inefficiencies that facilitated exchange in comparison to money.

• There needs to be a 'double coincidence of wants means as the barter system was between the two-person both of them must have the commodities that the other wants.

• Indivisibility of certain goods as the goods sometimes carried more or less of the monetary values the barter transaction could not take place.

• Difficulty in storing wealth as the society depended heavily on the perishable goods thus storing the wealth for the future could be not possible.

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• https://brainly.in/question/2258905 answered by Nikitasingh79