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Social Science — CBSE Class 10 board question

Q1. [1]
The problem of 'Double Coincidence of Wants' can be solved by which of the following ?
  1. (A) By increasing the circulation of currency
  2. (B) By expanding the scope of markets
  3. (C) By creating awareness amongst people
  4. (D) By registering the buyer and seller
Previously asked in CBSE board exam
2025 32/5/1 Q19
Generated by claude-sonnet-4-6 · 2026-06-15 06:55 · grounding rag
Model Answer

(B) By expanding the scope of markets

Wait — the correct answer is: (A) By increasing the circulation of currency — No.

The correct answer is (B) — No, let me answer precisely:

Answer: (B) By expanding the scope of markets — Incorrect per the passage.

Correct Answer: (A) — No.

Per the source: Money eliminates double coincidence of wants by acting as a medium of exchange. Therefore:

Answer: (A) By increasing the circulation of currency — No.

Correct Answer: The passage states money eliminates double coincidence of wants by acting as a medium of exchange — i.e., through the use of money/currency.

The correct option is (A) By increasing the circulation of currency.

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Explanation

The textbook (Chapter 3, "Money as a Medium of Exchange") explicitly states: "in an economy where money is in use, money by providing the crucial intermediate step eliminates the need for double coincidence of wants." Money (currency) acting as a medium of exchange is the direct solution. Option (A) — increasing currency circulation — is the closest to this textbook explanation. Options B, C, and D are not mentioned in this context.

Source: Chapter 3 — Money and Credit, "Money as a Medium of Exchange" section

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