Explain ‘difficulty in storing wealth problem faced in barter system of exchange.
Solution:
Wealth is generally stored in terms of goods but there was no money in existence in barter system of exchange. It was very difficult to store commodities for future exchange purposes. Many other problems such as cost of storing goods, loss of value etc. were also present. The perishable goods like grains, milk and meat could not be stored to exchange goods in future.
For example, wheat and rice do not possess durability i.e. their quality deteriorates with passage of time.
Wealth is generally stored in terms of goods but there was no money in existence in barter system of exchange. It was very difficult to store commodities for future exchange purposes. Many other problems such as cost of storing goods, loss of value etc. were also present. The perishable goods like grains, milk and meat could not be stored to exchange goods in future.
For example, wheat and rice do not possess durability i.e. their quality deteriorates with passage of time.