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How does money solve the problem of double coincidence of wants ?? Explain with example ?? |
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Answer» Use of money overcomes the drawbacks of barter system of exchange in the following manner:(i) With the introduction of money, double coincidence of wants is no longer needed.(ii) Money facilitates storage of value which is difficult in barter system.(iii) Money facilitates satisfaction of wants even in smaller units which is not possible in barter system.(iv) Money serve as a medium of exchange. Accordingly, scope of exchange has greatly widened. Suppose i want the thing u have and u want the thing that i have .so here we could money as the common source by which i and you could get their things without any ...... Money acts as a medium of exchange |
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