AI-generated practice question — model-generated for extra practice, not a previous-year CBSE board question.
In a barter system, exchange requires double coincidence of wants — both parties must want exactly what the other has to offer. Money eliminates this by acting as a medium of exchange. A seller first exchanges goods for money, then uses that money to buy whatever he needs — without needing to find a buyer who also has what he wants.
Source: Money and Credit, Chapter 3
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Examiners expect two clear points: (1) define double coincidence of wants briefly, and (2) explain how money removes it by acting as an intermediate/medium of exchange. Use the shoe manufacturer–wheat farmer example only if you have space; here it's implied. The phrase "medium of exchange" is a key term — always include it. Avoid lengthy examples; 40–60 words is the target for 2 marks.