The "double coincidence of wants" is
A)how value is stored when we transact with money.
B)eliminated when we barter instead of using money.
C)what is needed to use money.
D)money's role as a unit of account.
E)eliminated with the use of money.

Question

Quizplus · Accepted Answer

The "double coincidence of wants" refers to the problem of two parties needing to have a mutual desire for the goods or services each other was offering in order to conduct a barter exchange. This problem is eliminated with the use of money as an intermediary, allowing individuals to exchange goods or services for money and then use that money to purchase whatever they wish, regardless of whether the seller desires their original goods or services. Therefore, the best choice is E, as the use of money eliminates the "double coincidence of wants" problem.

The "Double Coincidence of Wants" Is