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: -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-3: -Because barter is based on reciprocity, it requires a mutual coincidence of wants between traders. This requirement complicates barter, but in a sufficiently large system traders can be found to supply most wants.

Detailed explanation-4: -Lack of double coincidence of wants. Lack of a common measure of value. Indivisibility of certain goods. Difficulty in making deferred payments. Difficulty in storing value.