Choose the statement as true/false:

Double coincidence of wants refers to a situation when one person wants to buy something other than what the other person wants to sell.

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True

False

answer is B.

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Detailed Solution

The above statement is False.
In the barter system, two or more people exchange goods without money. In this system, when one person wants to buy exactly what the other person wants to sell, it is known as a "double coincidence of wants." It is undoubtedly beneficial in some instances. However, in most cases, one person does not want to buy what the other person wants to sell, and then conflict occurs. Money is used to solve the problem of two desires that coincide. It acts as a medium of exchange and removes the problem altogether. Money is anything universally accepted as a means of business, a measure of value, and a store of value. It is accepted as a medium of exchange as goods and services can be bought and sold easily using money.
Thus the correct statement would be Double coincidence of wants, which refers to a situation when two or more people want to buy something other than what the other person wants to sell.

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