Final answer:
The barter system has disadvantages such as the need for a double coincidence of wants and the difficulty of entering into future contracts. Money solves these problems by serving as a medium of exchange and enabling convenient and efficient transactions.
Step-by-step explanation:
Another problem with the barter system is that it does not allow for easily entering into future contracts for purchasing goods and services. For example, if the goods are perishable, it may be difficult to exchange them for other goods in the future. Additionally, the barter system requires a double coincidence of wants, meaning that two parties need to want and have what the other party wants, which can be challenging to arrange in a complex economy with a division of labor.
On the other hand, exchange systems that rely on money solve these problems. Money serves as a medium of exchange, allowing for easy transactions between buyers and sellers. It eliminates the need for a double coincidence of wants and enables future contracts, making it much more convenient and efficient for trading goods and services.