ECONOMICS (CBSE/UGC NET)

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ECONOMICS

MONEY

Question [CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
In a barter system, in order to obtain a good or service from a supplier, one must possess a good or service of equal value, which the supplier also desires. This “double coincidence of wants” is unlikely to happen and makes is hard to exchange goods or services by barter. Money is a much more efficient way to make this happen.
A
medium of exhange
B
unit of account
C
store of value
D
None of the above
Explanation: 

Detailed explanation-1: -In a barter system, goods are directly exchanged without the use of money. The parties in the barter system exchange their goods only if they want each other’s goods. This is known as the double coincidence of wants.

Detailed explanation-2: -Hence, the correct answer is It is a trade in which goods are exchanged without the use of money.

Detailed explanation-3: -In the barter system, people exchange goods directly without the use of money. It works only when two parties each hold an item the other party wishes to have. This condition is called double coincidence of wants.

Detailed explanation-4: -Money evaluates every commodity and service with a convincing value. A person who doesn’t want anything in exchange will also be ready to work for someone for money. Money is a durable thing and lasts many years, even if kept unused.

There is 1 question to complete.
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