What are the Drawbacks of the Barter System?
It is a traditional method of satisfying the consumer needs mutually. In the present time also, many people follow this system informally to acquire products they want. There are many defects of the barter system which are stated below.
- Lack of double coincidence of wants
- Lack of a common measure unit
- Difficulty in storing wealth
- Division of certain goods is not possible
- Difficulty in making future payments
- Lack of specialization