Question

What was 'Barter System' based on?

• A. Double coincidence of wants
• B. Wants of buyer
• C. Wants of seller
• D. Climatic conditions

Answer 1

The correct option is A Double coincidence of wants

• In the ancient to medieval times, People exchanged services and goods for other services and goods in return.
• The above mentioned exchange system is called barter system.
  
• The problem of double coincidence of wants arises due to the barter system
• Double coincidence is nothing but two persons are in need of each others goods which is highly coincidental in nature.
  
• The problem was solved with the introduction of money.
• Money is used medium of exchange and for storage of value.
• The correct option is A.