ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -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.

Detailed explanation-2: -All the goods which are be exchanged are not of the same value, so it is very difficult to determine the ratio of exchange between the different goods.

Detailed explanation-3: -The five main difficulties found in barter system are as follows: 1. Double Coincidence of Wants 2. Lack of a Standard Unit of Account 3. Impossibility of Subdivision of Goods 4.

Detailed explanation-4: -Problem of divisibility: During the barter system of trade, it was not possible to divide some goods into smaller units because some goods were only useful as a whole unit and if divided into smaller units it became useless.