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

Question

Quizplus · Accepted Answer

The "double coincidence of wants" refers to the situation where two parties have to want what the other has in order to trade or barter with each other. This makes trading difficult and inefficient. However, with the use of money, this problem is eliminated as money is accepted by everyone and can be used to trade for any good or service. Therefore, the correct choice is B, which states that the "double coincidence of wants" is eliminated with the use of money.

The "Double Coincidence of Wants" Is