'Problem of double coincidence of wants' is removed because money acts as

Medium of exchange

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Store of value

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Measurement of value

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Mode of deferred payment

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Solution

The correct option is A
Medium of exchange

Money as a medium of exchange removed the problem of double coincidence of wants.

Money as medium of exchange solves the barter's problem of lack of double coincidence of wants as money has separated the acts of sale and purchase. You can sell goods for money to whosoever wants it and with this money you can buy goods from whosoever wants to sell them.

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Similar questions

‘Problem of double coincidence of wants’ is removed because money acts as

Group A	Group B
1. Near Money	a. Sea Shells
2. Secondary function of money	b. Double coincidence of wants
3. Commodity Money	c. Fiat money
4. Barter	d. Measure of value
5. Legal tender	e. Bills of exchange
	f. Standard of deferred payments
	g. Metallic money

Reena a bought a house. While valuing her house, her grandmother valued it in terms of buffalo and carts.

What is the problem that is being faced in the valuation process?

(a) Lack of double coincidence of wants

(b) Lack of store of value

(d) Lack of standard for deferred payment

How does money solve the problem of double coincidence of wants? Explain with an example of your own.

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