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Which one of these is a limitation of the barter exchange?
lack of double coincidence of wants
lack of store of value
lack of a common measure of value
All of these
- Barter exchange relies on the double coincidence of wants. Both parties need to want exactly what the other has at the same time. This limits exchanges significantly.
- It lacks a store of value. Goods in barter can be perishable or may lose value over time, making it hard to save wealth.
- There’s no common measure of value. It's hard to compare the worth of different goods and services without a common metric.
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