PRC-3 · Chapter 17 · Question 6 of 20
Before money existed, a farmer trading wheat for a cow had to find a cow owner who specifically wanted wheat. This massive limitation of the barter system is known as the:
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: A) Double coincidence of wants
Explanation
The double coincidence of wants requires two parties to each possess exactly what the other desires, making barter trade incredibly difficult without money.
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