In performing which of its primary functions does money solve the problem of the double coincidence of wants?
A) Money supply
B) Unit of account
C) Medium of exchange
D) Barter system
E) Store of value

Question

Quizplus · Accepted Answer

Money serves as a medium of exchange, which directly addresses and solves the problem of the double coincidence of wants in barter systems. This problem arises when two parties each desire what the other has to offer at the same time. By using money as an intermediary, individuals can sell their goods or services for money and then use that money to purchase what they need, eliminating the need for a direct exchange of goods or services.

In Performing Which of Its Primary Functions Does Money Solve