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Which among these is an essentialfeature of barter system ?
[2011 (T-2)]
  • a)
    Money can easily exchange any commodity
  • b)
    It is based on double co-incidence of wants
  • c)
    It is generally accepted as a medium of exchange of goods with money
  • d)
    It acts as a measure and store of value
Correct answer is option 'B'. Can you explain this answer?
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Which among these is an essentialfeature of barter system ?[2011 (T-2)...
Essential Feature of Barter System: Double Coincidence of Wants

A key feature of the barter system is the requirement for a double coincidence of wants. This means that in order for a transaction to occur, both parties involved must have something that the other party desires. This feature is essential for the smooth functioning of the barter system and distinguishes it from other forms of exchange.

Here are the reasons why the double coincidence of wants is an essential feature of the barter system:

1. Mutual Benefit:
- The double coincidence of wants ensures that both parties involved in a barter transaction find value in the exchange. It allows individuals to trade goods or services they have for something they need or desire, creating a mutually beneficial arrangement.
2. Direct Exchange:
- The barter system relies on direct exchange, where goods or services are traded directly without the need for a medium of exchange like money. The double coincidence of wants facilitates this direct exchange by ensuring that both parties have something the other wants.
3. Lack of Standardization:
- Unlike money, which is a universally accepted medium of exchange, the barter system lacks standardization. Each transaction is unique and depends on the specific desires and needs of the individuals involved. The double coincidence of wants allows for this flexibility and customization in trading.
4. Limited Scope:
- The barter system is limited in its scope and applicability. It is most commonly used in small-scale transactions between individuals or communities. The double coincidence of wants is essential in such scenarios as it ensures that both parties can find a suitable exchange partner with complementary needs.
5. Need for Negotiation:
- In a barter system, negotiation plays a crucial role in determining the terms of the exchange. The double coincidence of wants provides a starting point for negotiation, as both parties must agree on the value of the goods or services being exchanged.
In conclusion, the double coincidence of wants is an essential feature of the barter system as it enables mutual benefit, facilitates direct exchange, accommodates the lack of standardization, addresses the limited scope of the system, and necessitates negotiation. Without this feature, the barter system would be impractical and inefficient in facilitating trade between individuals or communities.
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Read the extract given below and answer the questions that follows:Bartering is the act of trading one good or service for another without using a medium of exchange such as money. A bartering economy differs from a monetary economy in a variety of ways. When barter was used as an exchange medium, the needs of people were very limited. This trading method doesn’t involve money and it relies solely on exchanging goods and services for other services and goods in return. The use of money spans a very large part of our everyday life. To understand the usefulness of money, we must consider what the world would be like without money. How would people exchange goods and services? Economies without money typically engage in the barter system. Barter is highly inefficient for trying to coordinate the trades in a modern advanced economy. In an economy without money, an exchange between two people would involve a double coincidence of wants, a situation in which both the parties have to agree to sell and buy each other’s commodities. This is known as double coincidence of wants. What a person desires to sell is exactly what the other wishes to buy. In a barter system where goods are directly exchanged without the use of money, double coincidence of wants is an essential feature. Another problem with the barter system is that it does not allow us to easily enter into future contracts for purchasing many goods and services. Money solves the problems that the barter system creates. Money serves as a medium of exchange, which means that money acts as an intermediary between the buyer and the seller. Modern forms of money include currency — paper notes and coins. The other form in which people hold money is as deposits with banks.Answer the following MCQs by choosing the most appropriate optionQ. Which of the following features of money acts as an intermediate in the exchange process?

Read the extract given below and answer the questions that follows:Bartering is the act of trading one good or service for another without using a medium of exchange such as money. A bartering economy differs from a monetary economy in a variety of ways. When barter was used as an exchange medium, the needs of people were very limited. This trading method doesn’t involve money and it relies solely on exchanging goods and services for other services and goods in return. The use of money spans a very large part of our everyday life. To understand the usefulness of money, we must consider what the world would be like without money. How would people exchange goods and services? Economies without money typically engage in the barter system. Barter is highly inefficient for trying to coordinate the trades in a modern advanced economy. In an economy without money, an exchange between two people would involve a double coincidence of wants, a situation in which both the parties have to agree to sell and buy each other’s commodities. This is known as double coincidence of wants. What a person desires to sell is exactly what the other wishes to buy. In a barter system where goods are directly exchanged without the use of money, double coincidence of wants is an essential feature. Another problem with the barter system is that it does not allow us to easily enter into future contracts for purchasing many goods and services. Money solves the problems that the barter system creates. Money serves as a medium of exchange, which means that money acts as an intermediary between the buyer and the seller. Modern forms of money include currency — paper notes and coins. The other form in which people hold money is as deposits with banks.Answer the following MCQs by choosing the most appropriate optionQ. In a barter system

Read the extract given below and answer the questions that follows:Bartering is the act of trading one good or service for another without using a medium of exchange such as money. A bartering economy differs from a monetary economy in a variety of ways. When barter was used as an exchange medium, the needs of people were very limited. This trading method doesn’t involve money and it relies solely on exchanging goods and services for other services and goods in return. The use of money spans a very large part of our everyday life. To understand the usefulness of money, we must consider what the world would be like without money. How would people exchange goods and services? Economies without money typically engage in the barter system. Barter is highly inefficient for trying to coordinate the trades in a modern advanced economy. In an economy without money, an exchange between two people would involve a double coincidence of wants, a situation in which both the parties have to agree to sell and buy each other’s commodities. This is known as double coincidence of wants. What a person desires to sell is exactly what the other wishes to buy. In a barter system where goods are directly exchanged without the use of money, double coincidence of wants is an essential feature. Another problem with the barter system is that it does not allow us to easily enter into future contracts for purchasing many goods and services. Money solves the problems that the barter system creates. Money serves as a medium of exchange, which means that money acts as an intermediary between the buyer and the seller. Modern forms of money include currency — paper notes and coins. The other form in which people hold money is as deposits with banks.Answer the following MCQs by choosing the most appropriate optionQ. Which of the following has an essential feature of double coincidence?

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Which among these is an essentialfeature of barter system ?[2011 (T-2)]a)Money can easily exchange any commodityb)It is based on double co-incidence of wantsc)It is generally accepted as a medium of exchange of goods with moneyd)It acts as a measure and store of valueCorrect answer is option 'B'. Can you explain this answer?
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Which among these is an essentialfeature of barter system ?[2011 (T-2)]a)Money can easily exchange any commodityb)It is based on double co-incidence of wantsc)It is generally accepted as a medium of exchange of goods with moneyd)It acts as a measure and store of valueCorrect answer is option 'B'. Can you explain this answer? for Class 10 2025 is part of Class 10 preparation. The Question and answers have been prepared according to the Class 10 exam syllabus. Information about Which among these is an essentialfeature of barter system ?[2011 (T-2)]a)Money can easily exchange any commodityb)It is based on double co-incidence of wantsc)It is generally accepted as a medium of exchange of goods with moneyd)It acts as a measure and store of valueCorrect answer is option 'B'. Can you explain this answer? covers all topics & solutions for Class 10 2025 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Which among these is an essentialfeature of barter system ?[2011 (T-2)]a)Money can easily exchange any commodityb)It is based on double co-incidence of wantsc)It is generally accepted as a medium of exchange of goods with moneyd)It acts as a measure and store of valueCorrect answer is option 'B'. Can you explain this answer?.
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