Identify which of the following is not true regarding the inconvenience of Barter Exchange:

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Absence of double coincidence of wants

Absence of divisibility

Difficulty of storing wealth

Availability of money as a medium of exchange

answer is D.

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Detailed Solution

In a barter economy, money is not available as a medium of exchange.
In a barter exchange, an exchange between goods and services takes place to satisfy each other's needs. The double coincidence of wants is the most important key element in the barter trade system. Moreover, many difficulties led to the introduction of money into the economy. One such difficulty of the barter system is the lack of a means to store wealth. In addition, it is challenging to keep goods for longer, as storing goods such as wheat, rice, or any other goods starts to get rotten after a few months.

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