Question

How does money solve the problem of double coincidence of wants?​

Answer 1

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$\large{\underline {\underline{Double\: coincidence\:of\:wants}}}$

it is a type of system in barter system where goods are directly exchanged in place of goods only .

Money has solved the problems the double coincidence of wants let's understand by am example:

suppose there is a farmer who wants to sell his rice and he need sugar in terms of rice so he have to look for a guy who buy rice and provide him sugar in place of rice.So,here a lots of time is wasting in search of companion.Money has removed all the hindrance (obstacle).with the coming of money in the form of currency,coins.Money have a value for e.g a ₹5 coin have some value.

=>So,a farmer can easily buy sugar through money.Suppose sugar is @₹15/kg so,he have to just pay ₹15 to the seller and he can easily buy sugar.There is no need to wait for searching the guy who need his rice and provide him sugar in terms of rice.Money had saved the time .

Answer 2

Money solves the problem of double coincidence of wants by acting as a medium of exchange. Double coincidence of wants implies a situation where two parties agree to sell and buy each other's commodities., i.e., what one party desires to sell is exactly what the other party wishes to buy.