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Which function of money removes the need for a double coincidence of wants in trade?
AMedium of exchange
BStore of value
CUnit of account
DDeferred payment
Answer & Solution
Correct answer: A. Medium of exchange
1. Under barter, a trade needs both parties to want what the other has.
2. Money is accepted by everyone, so a seller takes money rather than goods.
3. That role is money acting as a **medium of exchange**.
4. Unit of account is about measuring value, and store of value is about carrying wealth forward, so neither solves the matching problem.
_Source: NCERT Class 12 Introductory Macroeconomics, Ch 3 "Money and Banking", section 3.1 FUNCTIONS OF MONEY_
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