MONEY AND INFLATION — Economics STD 12 Commerce — Question
Gujarat BoardEnglish MediumSTD 12 CommerceEconomicsMONEY AND INFLATION3 Marks
Question
Why did the barter system pose difficulty in storing wealth?
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Answer
Difficulty in storing wealth:
The Barter system posed the problem of storage of the exchanged and acquired goods or wealth. For example, a farmer had to store large amount of crop that too for a very long period in order to fulfill even the simplest needs like shoes or clothes that he may need in the future. This became practically impossible.
A person like farmer producing goods in large volumes had to immediately exchange his goods against other goods or services. In case he failed to do this he had to store his large volume of production for a long time which was not possible.
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