Question

Which one of these is a limitation of the barter exchange?

• A. Lack of double coincidence of wants
• B. Lack of store of value
• C. Lack of common measure of value
• D. All of these

Answer 1

The correct option is D All of these

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.