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6 Fill in the blanks of the following table with suitable information: 1 39
MONEY AS A MEDIUM OF EXCHANGE
Resource Defination
Where goods are directly exchanged without the
use of money.
When both parties have to agree to sell and buy
each other commodity.

7 Q-In the question given below, there are two statements 1 39
marked as Assertion (A) and Reason (R). Read the
statements and chose the correct option:
Assertion (A): What a person desires to sell is exactly
what the other wishes to buy.
Reason (R): In a barter system where goods are directly
exchanged without the use of money, double coincidence
of wants is an essential feature.
A. Both A and R are true and R is the correct explanation
of A.
B. Both A and R are true but R is the correct explanation
of A.
C. A is correct but R is wrong.
D. A is wrong but R is correct.
8 Q-In the question given below, there are two statements 1 39
marked as Assertion (A) and Reason (R). Read the
statements and chose the correct option:
Assertion (A): A person holding money can easily
exchange it for any commodity or service that he or she
might want.
Reason (R): In a barter system where goods are directly
exchanged without the use of moneyA. Both A and R are
true and R is the correct explanation of A.
B. Both A and R are true but R is the correct explanation
of A.
C. A is correct but R is wrong.
D. A is wrong but R is correct.
9 Q. In an economy where money is in use, money by providing 1 39
the crucial intermediate step eliminates the need for double
coincidence of wants. It is no longer necessary for the shoe
manufacturer to look for a farmer who will buy his shoes and at
the same time sell him wheat. All he has to do is find a buyer
for his shoes. Once he has exchanged for his shoes for
money, he can purchase wheat or any other commodity in the
market. Since money act as an intermediate in the exchange
process.
Analyse the loan information given above, considering one of
the following correct option.