The difficulties of the Barter system
The barter system is one of the oldest forms of trade. This formed the main system of exchange amongst individuals and countries over a long time, till a common medium of exchange "Money" formed the basis of trade. Since in the most individuals and families were self sufficient there was little need for exchange. However as the needs grew the requirement to exchange grew too. With is grew the difficulties of the barter system. In this blog we will discuss some of the main difficulties faced in the barter system. Main difficulties faced 1. Double Coincidence of Wants: When there is a lack of a medium of exchange, a difficult problem of double coincidence of wants was faced by the people . For exchange of goods in the barter system it is necessary that the person selling a particular good is also needed by a particular buyer. On the other hand the person wanting to buy a good needs to correspond with a person selling the same. If there is a mismatch then the ...