How does money solve the problem of double coincidence of wants? Explain with an example of your own.

(i) In barter system usually double coincidence of wants is found in which the goods are exchanged without the use of money. In this system, goods and services are exchanged in return of goods and services needed by the other person without any exchange of money. But the main deal is that both parties must have the goods and services which the other party is ready to buy or it is useful for him.

(ii) Money solves the issue in such a way that there is no need for the person to have the same thing the other one wants to buy. If a person has money then there is no matter to having the same required commodity or not. A person can buy anything he wants to. He can easily get exchanged the service or commodity.

(iii) For example- A shoemaker wants to buy some rice. In this situation the shoemaker has to find a person who is interested in buying his shoes and in exchange he will provide him rice so that both will be able to exchange the goods and services which are related to their needs. But if shoemaker had money then he could purchase whatever he wanted to buy from the market and in this way, he would be able to solve the deal easily.