Double coincidence of wants is also known as

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Barter System

Medium of exchange

Collaterals

answer is B.

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Detailed Solution

Double coincidence of wants, also known as the barter system.
It 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, an ice cream vendor wants a watch, but a watch seller wants a cake, not 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. But there are some drawbacks also like Lack of standard unit of value, Lack of double coincidence of wants, etc.

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