Explain any two draw backs of the barter system.
Asked by Topperlearning User
24th April 2015,
7:31 AM
Answered by Expert
Answer:
Lack of double coincidence of wants: A person with a particular good has to find a person who has the good of his wants and he should also possess the good wanted by the other person. Hence, exchange of goods is not possible without the double coincidence of wants.
Lack of store of value: Wealth is stored in terms of goods as there was no money in existence. Storage of goods cost, loss of value, movement of transfer etc. Hence, it is not practically possible to store the people’s purchasing power.
Answered by Expert
24th April 2015,
9:31 AM
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