Question

SICS
State True or False: -
151
1) Silk routes meant for trade link.
2) Double coincident of wants was essential for barter system
3) Informal sources of credit asks for colaterals.
4) Political parties are essential in a democracy.
5) G-77 was organised by very poor countries.​

Answer 1

Answer:

true

false

false

true

true

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Answer 2

Answer:

please mark me as brainiest

Explanation:

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. Money does away with this tedious and complex situation by acting as a medium of exchange that can be used for one and all commodities. For example, if an ice-cream vendor wants a bicycle but the bicycle manufacturer wants clothes, and not ice-creams, then the vendor can use money to obtain a bicycle. He does need to adhere to the bicycle man’s needs because money acts as the common medium of exchange. Similarly, the bicycle manufacturer can then use the money to buy clothes.