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प्रश्न
What is meant by the double coincidence of wants? How does money overcome this problem?
Which disadvantage of the barter system is overcome by the function of money as a medium of exchange?
How does the use of money solve the problem of lack of double coincidence of wants that existed under the barter system?
उत्तर
- A person with a particular good has to find a person who has the good of his wants, and he should also possess the good wanted by the other person. This is known as the double coincidence of wants.
- The introduction of money resulted in the end of the barter system, where goods were exchanged according to needs. Now, money acts as an intermediate in the exchange process, and thus, it is known as a medium of exchange. Anyone can exchange his goods for money and buy commodities required by him or his family.
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संबंधित प्रश्न
How does money solve the problem of lack a common measure of value that existed under the barter system?
Briefly explain the following with reference to the barter system of exchange.
(i) Lack of common measure of value.
(ii) Lack of standard of deferred payments.
State any two demerits of the Barter system of exchange?
Fill in the blank
The system of exchanging things is known as _______.
Explanation of Keyword: Barter System
Fill in the blank
The system of exchanging services and goods is known as the ________ system.
Write short notes of the barter system.
Name the system in which the double coincidence of wants is an essential feature.
Explain the meaning of barter exchange by giving an example.
