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Question
Name the system in which the double coincidence of wants is an essential feature.
Options
Barter system
Money economy
Global economy
None of these
Solution
Barter system
Explanation:
The barter system is a system of exchange where goods and services are traded directly for other goods and services without the use of money. The double coincidence of wants is an essential feature of this system, meaning that both parties must have something the other wants for the exchange to occur.
RELATED QUESTIONS
What is meant by the double coincidence of wants? How does money overcome this problem?
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.
Explain the meaning of barter exchange by giving an example.
