HARD
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The invention of money eliminated the problem of double coincidence of wants.

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Important Questions on Money and Banking

MEDIUM
Social Science>Economics>Money and Banking>Money as a Medium of Exchange
Which one is accepted as money in modern economy?
MEDIUM
Social Science>Economics>Money and Banking>Money as a Medium of Exchange
At present which form of money is increasingly used apart from paper money?
EASY
Social Science>Economics>Money and Banking>Money as a Medium of Exchange
Which one of these is a limitation of the barter exchange?
EASY
Social Science>Economics>Money and Banking>Money as a Medium of Exchange
Double coincidence of wants occurs when two people have goods they are both happy to swap in exchange.
MEDIUM
Social Science>Economics>Money and Banking>Money as a Medium of Exchange
What are the different forms of modern currency?
HARD
Social Science>Economics>Money and Banking>Money as a Medium of Exchange

Read the following dialogue between two people:

Sita: I want 1 kg of potatoes.

Rani: What will you give in exchange?

Sita: I can give you 2 litres of milk in return for the potatoes.

Rani: I don't need milk, I want a pair of shoe.

 

Which of the following problem is being faced by Sita and Rani in their exchange process?

HARD
Social Science>Economics>Money and Banking>Money as a Medium of Exchange
Make a list giving names of the currencies of France, Germany, China, Brazil.
HARD
Social Science>Economics>Money and Banking>Money as a Medium of Exchange
If Harish has a mobile and he wants a tabet. Shivam has a laptop and he wants a mobile in exchange of laptop, than what problem Harish and Shivam are facing.
HARD
Social Science>Economics>Money and Banking>Money as a Medium of Exchange
How does money solve the problem of double coincidence of wants? Explain with an example of your own.
HARD
Social Science>Economics>Money and Banking>Money as a Medium of Exchange
What are the various forms of modern money?
EASY
Social Science>Economics>Money and Banking>Money as a Medium of Exchange
Before money, what was used as a medium of exchange?
EASY
Social Science>Economics>Money and Banking>Money as a Medium of Exchange
_____ refers to exchange of goods for goods.
EASY
Social Science>Economics>Money and Banking>Money as a Medium of Exchange
Lack of double coincidence of wants exists in barter exchange as all commodities are not of equal value.
HARD
Social Science>Economics>Money and Banking>Money as a Medium of Exchange
The barter system has deficiencies like-
EASY
Social Science>Economics>Money and Banking>Money as a Medium of Exchange
Which of the following is not a problem of barter system of exchange?
MEDIUM
Social Science>Economics>Money and Banking>Money as a Medium of Exchange
Modern forms of money include paper, coin and precious ornaments.
EASY
Social Science>Economics>Money and Banking>Money as a Medium of Exchange
_____ of wants refers to the simultaneous fulfillment of mutual wants of buyers and sellers.
HARD
Social Science>Economics>Money and Banking>Money as a Medium of Exchange
What is double coincidence of wants? Explain with an example?
EASY
Social Science>Economics>Money and Banking>Money as a Medium of Exchange
Cotyledons are also called-
EASY
Social Science>Economics>Money and Banking>Money as a Medium of Exchange
 What is Barter system? What are its drawbacks?