Question

Difficulty with barter system was

• A. Exchange was difficult due to lack of double coincidence of wants.
• B. Credit purchase was difficult as nature of commodity kept changing.
• C. Evaluation of the commodity was difficult as the commodities exchanged were different.
• D. All of the above

Answer 1

Answer: (D)

All of the above

The problem with the barter system was that both the parties had to agree to sell and buy each other’s product. This is known as double coincidence of wants. In barter system, where goods are directly exchanged without the use of money, it is essential that there is a double coincidence. Double coincidence is a situation where two persons need or desire to have each other’s product.