Question

Money is based on?
a) currency
b) single coincidence of wants
c) double coincidence of wants
d) commodity
And WHY?

Answer 1

Answer:

b)

Explanation:

because only one person have the need to sell any of his good in turn for money. thus only one is involved and infact money eliminates double coincidents of wants.

Answer 2

Money is based on the double coincidence of wants. (Option C)

• Money is built on the double coincidence of desires, which implies that one person sells his product for the sake of money to another who has money but not the commodity.
• Money, as a means of trade, addresses the problem of double coincidence of desires.
• A circumstance in which two parties agree to sell and buy each other's commodities, i.e., what one party seeks to sell is exactly what the other party intends to buy, is referred to as a double coincidence of wants.
• Money eliminates this time-consuming and complex scenario by serving as a means of trade that may be utilized for any goods.
• Thus, we can say that money is based on the double coincidence of wants. Option C is correct.