When both parties agree to sell and buyeach others commodities it is knownas :[2011 (T-2)]a)measure of valueb)double coincidence of wantsc)store of valued)creditCorrect answer is option 'B'. Can you explain this answer?

Question

Answer

Double Coincidence of Wants

The term 'double coincidence of wants' refers to a situation in which both parties involved in a transaction have a mutual desire to sell and buy each other's commodities. It is a necessary condition for barter trade to occur smoothly, as it ensures that both parties are willing to exchange goods or services without the need for a medium of exchange such as money.

When both parties agree to sell and buy each other's commodities:

It is known as double coincidence of wants. This means that both parties have a mutual desire to trade their goods or services with each other.

This condition is essential for a barter trade to take place. In a barter system, goods or services are exchanged directly without the use of money as a medium of exchange.

Double coincidence of wants eliminates the need for a medium of exchange and allows for a direct exchange between parties.

It requires both parties to have a complementary demand and supply, where one party wants what the other party has to offer.

Without double coincidence of wants, it would be difficult to facilitate a smooth exchange of goods or services, as one party may not have a desire for the goods or services offered by the other party.

Therefore, when both parties agree to sell and buy each other's commodities, it is known as the double coincidence of wants, which is a necessary condition for barter trade.

Top Courses for Class 10View all

Science Class 10

Social Studies (SST) Class 10

Mathematics (Maths) Class 10

English Grammar Advanced

English Grammar Basic

Top Courses for Class 10

Top Courses for Class 10

Suggested Free Tests

Related Content

About Class 10

Class 10 Study Material

Class 10 All Subjects

NCERT Textbook Solutions

Other Classes

Important Links

Company