what was the main problem of barter system
Answers
Answer:
The main problem of barter system was explained briefly below:
Explanation:
The biggest issue with this system was the lack of such a person who could accept a person's commodity and make available the commodity requested by him.
Problem and difficulty in barter system:
- The absence of a standardised unit of account
A barter economy lacks a common medium of trade as well as a standard unit of account for measuring and quoting prices. The number of exchange ratios (price of goods stated in terms of each other) between goods would be quite enormous in the absence of a common or standard unit of account.
The barter system is a method of exchanging things without the need of money. The inability to make postponed payments, a lack of common measure value, difficulties in storing items, and a lack of double coincidence of wants are all problems linked with the barter system.
Find more like this here:
https://brainly.in/textbook-solutions/q-barter-3
#SPJ6
The main problems of the barter system are the following.
Money is a method of exchanging goods, but in the barter system, money is not used as a medium for exchanging goods, preferably one type of good is exchanged for another type of good.
An example of a barter system is selling rice to purchase wheat.
The problems associated with the barter system are,
1. Lack of double coincidence of wants
2. Inability to make deferred payments.
3. Difficulty in the storage of goods.
4. Lack of common measure value.
A barter economy lacks a common medium of trading as well as a standard unit of account for measuring and estimating prices. The number of exchange proportions (the price of goods stated in terms of each other) between goods would be quite extensive in the absence of a common or standard unit of account.
Hence, these are the main problems occurred at the barter system.
Related links
https://brainly.in/textbook-solutions/q-difficulties-associated-barter
https://brainly.in/question/35372342
#SPJ6