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.

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Money resolves the limitations of the barter system by acting as a universal medium of exchange.
Updated On: Jan 31, 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 is true because money is universally accepted as a medium of exchange, enabling trade and transactions. Statement 2 is also true because money eliminates the problem of double coincidence of wants by acting as a medium of exchange in the economy.
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