Which of the following is a typical characteristics of barter system?

a. A common medium of exchange
b. Deferred coincidence of wants
c. A common unit of account
d. A standard for different payment

Dear Student,

​​​​​​The correct answer is Option B (Double coincidence of wants). This means that at a point of time, the two individuals should be in possession of such goods which they are willing to exchange for the satisfaction of their wants. This is the very essence of Barter System, that the wants of the two individuals must coincide. However this is not very simple. It is not simple to find a person who wants your rice and at the same time possess wheat that you want.


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A common medium of exchange
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Dear student
b) deferred coincidence of wants
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(B)isthe right answer
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