ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -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.

Detailed explanation-2: -Therefore, buying a pair of jeans for ₹1200 is not an example of barter system.

Detailed explanation-3: -Barter system was a system of exchange where goods were exchanged for goods and there was no common medium of exchange in the economy.

Detailed explanation-4: -The problems associated with the barter system are inability to make deferred payments, lack of common measure value, difficulty in storage of goods, lack of double coincidence of wants.