WAEC Commerce 2019 Question 6

Question 6

Money

The problem of double coincidence of wants is that

  1. A.it is hard to determine the exchange rate for goods.
  2. B.it does not encourage purchase of large quantities and varieties.
  3. C.deferred payment is not possible because goods exchanged are not durable.
  4. D.one has to find someone who wants his surplus and also has what he needs.
Show the answer and explanation

Answer: D (one has to find someone who wants his surplus and also has what he needs.)

Explanation

Under barter, a trader must find a person who both wants what he has and has what he wants.