Barter System Difficulties

9.  In Barter system goods were exchanged
through goods.
 In this process wants of both buyer and the
seller must coincidence.
 This is called Lack of coincidence of wants.
 Lack of coincidence of wants make the
difficulty of Barter system.

11.  Some Goods are Perishable.
 They perish in a short period.
 So it was not possible to store the goods in
Barter system for a long time

12. If we store
in Barter
system

13.  In Barter system we cannot divide all the
commodities into small units.
 It is also one of the problem of Barter system.

15.  In Barter system the value of every commodity
can be measured in terms of other commodity.
 But it is not possible to measure the commodity
value with other commodity.

16.  Deferred payments means future payments.
 Under Barter system future payment for
present transaction was not possible.
 The future exchange involved some difficulties

17. In order to overcome
the discussed
difficulties in barter
system, money was
invented in economy.