[[1]] solves the problem of double coincidence of wants.

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Detailed Solution

Money solves the problem of double coincidence of wants by acting as a medium of exchange. Double coincidence of wants, also known as the barter system, implies a situation where two parties agree to sell and buy each other's goods or commodities, i.e. one party wants to sell exactly what the other party wants to buy. In this complex situation, Money acts as a medium of exchange that can be used for one and all commodities. For example, if an ice cream vendor wants a watch but a watch seller wants a cake, not an ice cream. So in this situation, they will not adhere to each other's needs. Instead, they can use the money to buy what they want, an ice cream vendor can buy a watch, and a watch seller can buy a cake.

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