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Question -

What is Barter system? What are its drawbacks? 



Answer -

Barter system of exchange is a system in which goods are exchanged for goods.
It’s Drawbacks are:

  1. Lack of double coincidence of wants.
  2.  Lack of divisibility.
  3.  Difficulty in storing wealth.
  4.  Absence of common measure of value.
  5.  Lack of standard of deferred payment.

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