Limitations of Barter System

Q. Which of the following justifies the need of money over the barter system?

1. Double coincidence of wants
2. Meeting new people
3. Different values of commodities
4. People incurring losses

Q. Barter system made it difficult for people to find what they needed and to exchange the same with what they had.

1. False
2. True

Q. Money could be stored and used later. Which limitation of the barter system did it solve?

1. Problem of storage
2. Lack of availability
3. Different want of goods
4. Lack of medium of exchange

Q. In a barter system, finding a person who has the product we need and who needs the product we have is called __________.

1. pairing of sellers
2. double coincidence of wants
3. double pairing of people
4. triple coincidence of needs