Question

what is barter system? what are its drawbacks or disadvantages of barter system? for 2marks for degree level​

Answer 1

Answer:

A barter system is an old method of exchange. Th is system has been used for centuries and long before money was invented. People exchanged services and goods for other services and goods in return.

Explanation:

•Lack of double coincidence of wants.

•Lack of a common measure of value.

•Indivisibility of certain goods.

•Difficulty in making deferred payments.

•Difficulty in storing value.

Answer 2

Answer:

it is a trade in which goods are exchanged without the use of money