Give three reasons why batering is not simple method of exchange
1. Lack of standardization: Unlike money, which has a standardized value that is universally accepted, bartering involves negotiating the value of goods or services between two parties. This lack of standardization can make it difficult to ensure fair exchange and can lead to disputes.
2. Double coincidence of wants: Bartering requires both parties to have something that the other party wants in order for a trade to occur. This can be challenging as it often requires a coincidence of wants, where both parties have something the other desires. This can make finding suitable trading partners difficult and time-consuming.
3. Difficulty in storing value: Money serves not only as a medium of exchange but also as a store of value. In contrast, goods or services exchanged through bartering may not hold their value over time or may be perishable, making it challenging to store value for future transactions. This can limit the usefulness of bartering as a method of exchange in the long term.