Question:
Read the following statements carefully:
Statement 1: Money is a commodity which is generally accepted as a medium of exchange.
Statement 2: Money solved the problem of double coincidence of wants.
Read the following statements carefully:
Statement 1: Money is a commodity which is generally accepted as a medium of exchange.
Statement 2: Money solved the problem of double coincidence of wants.
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Money eliminates the need for double coincidence of wants by acting as a universal medium of exchange in economic systems.
Updated On: Jan 30, 2025
- Statement 1 is true and Statement 2 is false.
- Statement 1 is false and Statement 2 is true.
- Both statements 1 and 2 are true.
- Both statements 1 and 2 are false.
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The Correct Option is C
Solution and Explanation
Statement 1: Money is universally accepted as a medium of exchange, which makes it a key feature in economic transactions.
Statement 2: Money overcomes the limitation of barter systems, including the problem of double coincidence of wants, by allowing indirect exchanges.
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