Assertion : Barter system has limitation of double coincidence of wants.
Reason: Money removes the problem of double coincidence of wants.
a)
Both A and R are true and R is the correct explanation of A
b)
Both A and R are true but R is not the correct explanation of A
c)
A is correct but R is wrong
d)
A is wrong but R is correct.
Correct answer is option 'A'. Can you explain this answer?

Question

Assertion : Barter system has limitation of double coincidence of wants.
Reason: Money removes the problem of double coincidence of wants.

a)
Both A and R are true and R is the correct explanation of A
b)
Both A and R are true but R is not the correct explanation of A
c)
A is correct but R is wrong
d)
A is wrong but R is correct.

Correct answer is option 'A'. Can you explain this answer?

Answer

¶¶¶→→ᴡᴇ ᴋɴᴏᴡ ᴛʜᴀᴛ ɪɴ ʙᴀʀᴛᴇʀ sʏsᴛᴇᴍ ᴛʜᴇʀᴇ ɪs ᴀ ᴄᴏɪɴᴄɪᴅᴇɴᴛ ᴛᴏ ɢᴇᴛ ᴀ ᴘᴇʀsᴏɴ ᴡʜᴏ ᴡᴀɴᴛ ᴀ ᴛʜɪɴɢ ɪɴ ᴇxᴄʜᴀɴɢᴇ ᴏғ ᴡʜᴀᴛ ᴡʜᴇʀᴇᴀs ᴛʜᴇ ᴍᴏᴅᴇʀɴ ғᴏʀᴍ ᴏғ ᴍᴏɴᴇʏ ɪs ʀᴇǫᴜɪʀᴇᴅ ʙʏ ᴀʟʟ ғᴏʀ ᴛʜᴇ sɪᴍᴘʟᴇ ᴇxᴄʜᴀɴɢᴇ ʙᴇᴛᴡᴇᴇɴ ᴛᴡᴏ ᴘᴇᴏᴘʟᴇs ᴅᴏɴᴇ ғᴏʀ ᴛʜᴇ ɢᴏᴏᴅs ᴀɴᴅ ᴍᴏɴᴇʏ ᴀs ᴍᴏɴᴇʏ ɪs ʀᴇǫᴜɪʀᴇᴅ ʙʏ ᴀʟʟ ғᴏʀ ɢᴇᴛᴛɪɴɢ ɢᴏᴏᴅs ᴡʜᴀᴛ ᴛʜᴇʏ ᴡᴀɴᴛ ɪɴ ᴇxᴄʜᴀɴɢᴇ ᴏғ ᴍᴏɴᴇʏ ,ᴍᴏɴᴇʏ ᴘʟᴀʏs ᴀɴ ɪᴍᴘᴏʀᴛᴀɴᴛ ʀᴏʟᴇ ᴛᴏ ʀᴇᴍᴏᴠᴇ ᴛʜᴀᴛ ᴅᴏᴜʙʟᴇ ᴄᴏɪɴᴄɪᴅᴇɴᴄᴇ ᴏғ ᴡᴀɴᴛ sᴜᴄʜ ᴀs ɪɴ ʙᴀʀᴛᴇʀ sʏsᴛᴇᴍ.... ¶¶¶

Answer

Double coincidence of wants mean when someone needs what you have and has what you needs. This is the problem of barter trade. Since barter trade is replaced by the system of currency, and it solves this problem, then R is the correct explanation of A.

Answer

OptionA is correct because we know that in barter system there is a coincident to get a person who want a thing in exchange of what whereas the modern form of money is required by all for the simple exchange between two peoples done for  the goods and money as money is required by all for getting goods what they want in exchange of money ,money plays an important role to remove that double coincidence  of want such as in barter system.

Answer

**Assertion:** Barter system has limitation of double coincidence of wants.

**Reason:** Money removes the problem of double coincidence of wants.

The correct answer is option 'A': Both the assertion and reason are true, and the reason is the correct explanation of the assertion.

**Explanation:**

The barter system is a system of exchange where goods and services are traded directly without the use of money. In a barter system, individuals have to find another person who wants what they have and also has something they want in return. This requirement of a double coincidence of wants creates limitations and difficulties in conducting transactions efficiently.

**Limitation of double coincidence of wants:**

In a barter system, for a trade to take place, both parties involved must have something the other party desires. For example, if a person wants to trade his wheat for a cow, he must find someone who has a cow and also wants wheat. This requirement poses several limitations:

1. **Difficulty in finding a suitable trading partner:** The process of finding someone who wants what you have and has what you want can be time-consuming and challenging. It may involve a lot of searching and negotiation, leading to inefficiency in trade.

2. **Inability to divide goods for smaller exchanges:** If the value of goods being exchanged is not equal, it becomes difficult to make a fair exchange. For example, if someone wants to exchange a cow for a small quantity of wheat, it may not be possible to divide the cow into smaller portions.

3. **Lack of standard measure of value:** In a barter system, there is no common measure of value for goods and services. This lack of standardization makes it difficult to determine the relative worth of different items, leading to confusion and disputes.

**Role of money in removing the problem of double coincidence of wants:**

Money solves the problem of double coincidence of wants by acting as a medium of exchange. It is a universally accepted medium that can be used to trade for any goods or services. Money eliminates the need for a direct trade between two parties and provides a convenient and efficient way to conduct transactions. With money, individuals can sell what they have and use the money received to buy what they want, without the need for a double coincidence of wants. Money allows for easy valuation, divisibility, and portability, making trade more efficient and convenient.

In conclusion, the assertion that the barter system has a limitation of double coincidence of wants is true. The reason provided, that money removes the problem of double coincidence of wants, is also true and correctly explains the limitation of the barter system.

Answer

I personally feel it should be 'b' as it is not a reason

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