Explain ‘difficulty in storing wealth problem faced in barter system of exchange.
Solution
Wealth is stored in terms of goods as there was no money in existence.
Wealth is stored in terms of goods as there was no money in existence.
There were many problems such as storage of goods cost, loss of value and movement of transfer.
goods are perishable in nature, can't be stored. For example, wheat and rice do not possess durability i.e. their quality deteriorates with passage of time. Storage of good requires time and efforts.
Hence, it is not practically possible to store people’s purchasing power.