What were the limitations of the barter system? Class 7

What were the limitations of the barter system? Class 7

What were the limitations of the barter system? Class 7

Answer:

The barter system had several limitations like:

1. It required a "double coincidence of wants," meaning both people had to want what the other offered. This made trading difficult.
2. There was no common way to measure the value of goods, making exchanges confusing.
3. Carrying large amounts of goods was not easy, the problem of portability.
4. During storing of goods, sometime they spoil like grains.
5. Some goods are not divisible, for a large item it cannot be broken for small items.