Which of the following is a typical characteristic of the barter system?
A common medium of exchange
Double coincidence of wants
A common unit of account
A standard for deferred payments
Double coincidence of wants is required for the barter system to operate.
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
(c) Absence of a common unit of value
(d) Lack of standard for deferred payment
Explain how money is a better substitute to barter system as a standard of deferred payments?
Double coincidence of wants is a typical feature of monetary system of exchange. State true or false, and explain why.