Question

Write any two difficulties of barter system.

Answer 1

Tow difficulties of bater system:-
1) Double coincidence of wants:- Owning to lack of generally acceptable medium of exchange, a difficult problem of double coincidence of wants was faced by the persons who wanted to sell and buy goods. For exchange of goods persons desiring to exchange goods must specifically want those goods what others offers in exchange. Thus, an individual who wants to have a good he must locate another person who offers to give up the good wanted by him and who is willing to accept in ex­change the good offered by him.
2) Lack if information:-

Another problem found in the barter system was that in it traders re­quired a good deal of information for exchange of goods. For example, if Some one wants to have a saw in exchange of a wooden table which he has made. Not only should he be able to assess the value of saw but the maker of a saw should also be able to determine the value of the wooden table which he wishes to exchange. All this required a lot of information about goods for which people must spend a good deal of time and resources to obtain such information.