passwella.
Menu

JAMB Economics 1989 Question 28

Question 28

Money and Inflation

The term 'double coincidence' of wants is usually associated with a

  1. A.bilateral exchange mechanism
  2. B.monetary exchange mechanism
  3. C.stock exchange system
  4. D.barter exchange mechanism.
Show the answer and explanation

Answer: D (barter exchange mechanism.)

Explanation

In barter each trader must want exactly what the other offers; this need for a double coincidence of wants is barter's main problem.