Question

Explain problem of double coincidence of wants 0

Answer 1

Goods are directly exchanged without the use of money. Here, both the exchanging partners are in the need of that goods. Double coincidence of wants is an essential feature.

Examples: (i) Farmer can exchange their grains by taking clothes from cloth maker.

(ii) Teachers get food to eat in exchange of teaching.

(iii) In modern era, farmers can exchange cereals for money to buy essential goods.