Social Science (087) — CBSE Class 10 board question

Double coincidence of wants arises in a barter system, where goods are directly exchanged without the use of money. It occurs when two parties each want to buy exactly what the other wants to sell. For example, a shoe manufacturer must find a farmer who wants shoes and is willing to sell wheat in exchange.

Source: Money as a Medium of Exchange, Chapter 3

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• The key phrase examiners expect is "barter system" — always mention it.
• Define it clearly: both parties must agree to sell and buy each other's commodities.
• Give the shoe-wheat example from the textbook — it directly earns marks.
• Do not confuse this with how money eliminates double coincidence; the question only asks how it arises.