what were the difficulties with the barther system
Answers
Answer:
Barter system had many difficulties which were faced by the people like lack of double coincidence of wants, lack of a common unit of value, difficulty of future payments or contractual payments and difficulty of storage of value and transfer of value.
Answer:
Barter system had many difficulties which were faced by the people like lack of double coincidence of wants, lack of a common unit of value, difficulty of future payments or contractual payments and difficulty of storage of value and transfer of value.
The five main difficulties found in barter system are as follows: 1. Double Coincidence of Wants 2. Lack of a Standard Unit of Account 3. Impossibility of Subdivision of Goods 4. Lack of Information 5. Production of Large and Very Costly Goods not Feasible.
Money was not used in the early history of man. Exchanges were few since each family was self- sufficient. Whatever exchanges there were, they took the form of barter, that is, exchange of goods for the other goods. Various difficulties were faced by the people in the barter economy.
Explanation:
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