In performing which of its primary functions does money solve the problem of the double coincidence of wants?
A)medium of exchange
B)unit of account
C)store of value
D)barter system
E)money supply

Question

Quizplus · Accepted Answer

The double coincidence of wants refers to the situation where two parties in a barter economy must both have what the other wants in order to trade. Money serves as a medium of exchange, allowing individuals to trade goods and services for a unit of value that is universally accepted, thus solving the problem of the double coincidence of wants. Units of money can be used to purchase whatever goods or services one desires, eliminating the need for a direct trade.

In Performing Which of Its Primary Functions Does Money Solve