Question

State with reasons, whether you 'agree' or 'disagree' with the following statement:
Barter system had many difficulties.

Answer 1

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 drawbacks 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.