10th Class Social Science Money and Credit Question Bank 10th CBSE Social Science Money and Credit

  • question_answer                   How does money solve the problem of Double Coincidence of Wants? Explain with an example of your own.      

    Answer:

                      Double Coincidence of Wants is an essential feature in a barter system, where goods are directly exchanged without the use of money. However, in an economy using money as a medium of exchange, it eliminates this by providing the crucial intermediate step. For example, it is not necessary for a shoemaker to look for a farmer who will buy shoes made by him and at the same time, sell rice to him. All he has to do is to find a buyer for his shoes, who will pay him money for them. With this money he can purchase rice or any other commodity available in the market.


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