Answer:
Double Coincidence of Wants Barter system can only work, when both the persons are ready to exchange each other's goods. For example, a person has surplus rice and he wants wheat then he will have to find a person who has surplus wheat and wants rice. But usually this type of double coincidence is rare, especially in modern times. Money has eliminated double coincidence of wants. In modern times, the buyer buys goods for money and the seller sells goods for money. So, the person having surplus rice can sell it in the market for money and from that money he can purchase wheat. So, money facilitates exchange of goods and services and helps in carrying on trade smoothly. Or The various forms that money took during the process of evolution are discussed below: (i) Commodity Money All sorts of commodities like pearls, sea-shells, salt etc have been used as a medium of exchange. (ii) Animal Money Animals such as cow, goat, etc were used as a medium of exchange. (iii) Metallic Money Money made from metals like gold, silver, copper etc was called metallic money. (iv) Paper Money Money made of paper is known as paper money. (v) Credit Money It refers to bank deposits banks which are withdrawable through a cheque. (vi) Plastic Money It is the modern form of money in the form of debit and credit cards. (vii) Virtual Money It is the latest form of money which exists in web world. Bit coin is the example of virtual money.
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