Choose if the given statement is true/false.

Money eliminates the double coincidence of wants.

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21% of IItians & 23% of AIIMS delhi doctors are from Sri Chaitanya institute !!

An Intiative by Sri Chaitanya

True

False

answer is A.

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Detailed Solution

The above statement is true.
Money eliminates the need for a double coincidence of wants. Before the introduction of money as a medium of exchange, people used to exchange one commodity for another, depending on their requirements under the barter system. However, exchanging goods in a barter system requires a double coincidence of wants. One of the major drawbacks is when the thing which one user wants to exchange in order to get something else is not accepted by the other user as he/she wants something else in exchange for their good. With money, people can purchase anything at any time point of time.

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