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Question
Which is an essential feature of barter system?
Options
It is based on transfer of value.
It is based on double coincidence of wants.
It is based on unit of account.
It is based on store of value.
Solution
It is based on double coincidence of wants.
Explanation:
In a barter system, one commodity is traded for another. To make transactions easier under the barter system, there must be a mutual benefit or necessity shared by the two parties. This is a "double coincidence" of the desire to facilitate a barter system transaction.
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