Question

Which is an essential feature of barter system?

Options

• It is based on transfer of value.

• It is based on double coincidence of wants.

• It is based on unit of account.

• It is based on store of value.

Answer 1

It is based on double coincidence of wants.

Explanation:

In a barter system, one commodity is traded for another. To make transactions easier under the barter system, there must be a mutual benefit or necessity shared by the two parties. This is a "double coincidence" of the desire to facilitate a barter system transaction.