Which of the following justifies the need of money over the barter system?

Double coincidence of wants

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Meeting new people

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Different value of commodities

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People were making a loss

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Solution

The correct option is C Different value of commodities
The barter system is the process of exchanging goods without an intermediate. However, since the value of goods and services were different, they could not always be exchanged. The invention of money as a medium of exchange eliminated these drawbacks. Soon money replaced the barter system and eliminated the need for double coincidence of wants.

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