What was the problem with the barter system?
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Answered by
3
heya frnd................
in barter system the transactions were based on exchange of goods
for example,a shoemaker has to find a farmer who will give him wheat in exchange of shoes .
therefore ,till there was barter system,goods were exchanged for goods
but now money is the medium of exchange
a person holding money can exchange it for whatever commodities he need.
.............hope it helps u.......
^_^
in barter system the transactions were based on exchange of goods
for example,a shoemaker has to find a farmer who will give him wheat in exchange of shoes .
therefore ,till there was barter system,goods were exchanged for goods
but now money is the medium of exchange
a person holding money can exchange it for whatever commodities he need.
.............hope it helps u.......
^_^
Answered by
1
Answer:
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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