Question

State with reasons the following statement is True or False.
Barter system had many difficulties or disadvantages.

• A. True
• B. False

Answer 1

The correct option is A True

Barter system was a system of exchange where goods were exchanged for goods and there was no common medium of exchange in the economy. Barter system had many difficulties 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.