What are the difficulties of Barter system? How has money solved these

1.	What are the difficulties of Barter system? How has money solved these problems?
Answer» Difficulties of Barter system 1. Lack of double co-incidence of wants 2. Lack of common measure of value. 3. Difficulty of sub – division. 4. Difficulty to store the goods To over come the above difficulties money can solved through these measures. 1. Metals were used as medium of exchange. 2. Paper money issued by central bank. 3. It has the full support of the government. 4. Nowadays bank money in the form of cheques, drafts, bills, credit card, debit card etc … play a very important role.

What are the difficulties of Barter system? How has money solved these problems?

Answer»

Difficulties of Barter system

1. Lack of double co-incidence of wants

2. Lack of common measure of value.

3. Difficulty of sub – division.

4. Difficulty to store the goods

To over come the above difficulties money can solved through these measures.

1. Metals were used as medium of exchange.

2. Paper money issued by central bank.

3. It has the full support of the government.

4. Nowadays bank money in the form of cheques, drafts, bills, credit card, debit card etc … play a very important role.