Money does not solve the double coincidence of wants problem unless it is generally acceptable.

Question

Quizplus · Accepted Answer

The double coincidence of wants problem arises when two individuals who have different goods or services to offer want what the other has, but they cannot agree on the terms of exchange because they lack a medium of exchange. Money can solve this problem if it is generally acceptable as a medium of exchange, meaning that most people in the economy are willing to accept it in exchange for goods and services. However, if money is not generally accepted, then it cannot solve the problem.

Money Does Not Solve the Double Coincidence of Wants Problem