Q & A — 6th 7th 8th 9th 10th

Questions and Activities (NCERT)

Question 1. How did the barter system work and what kinds of things were used for exchange in this system?

Answer: In the barter system, people exchanged one good or service for another good or service without using money. For example, wheat could be exchanged for shoes or clothes. Items such as cowrie shells, shells, salt, tea leaves, tobacco, cloth, livestock, seeds, etc. were used for exchange.

Question 2. What were the limitations of the barter system?

Answer: The major limitations of the barter system were—

It was difficult to find the right person who had the goods needed in exchange.
It was difficult to compare the appropriate value of different goods.
Some goods could not be divided into smaller parts.
It was difficult to carry heavy goods from one place to another.
It was difficult to preserve goods like wheat for a long time.

Question 3. What were the main features of ancient Indian coins?

Answer: Ancient Indian coins were made of gold, silver, copper and their alloys. Various symbols and figures were engraved on them. These included figures of animals, trees, mountains, kings and queens, and gods and goddesses.

Question 4. How did money change over time as a medium of exchange?

Answer: Over time, there were many changes in the form of money. Initially, items such as cowrie shells and shells were used in barter. After this, metal coins came into use. Then paper currency was introduced. In the present time, digital payment methods such as debit cards, credit cards, QR codes, net banking and UPI are being used.

Question 5. What steps might have been taken in ancient times to make Indian coins a medium of exchange in different countries?

Answer: Powerful rulers issued coins, and their coins began to be accepted in other states as well. Fixed symbols and figures were engraved on the coins, which made their identification possible. As the acceptance of coins increased in different regions, trade became easier. Foreign coins found in India also indicate that India had trade relations with other countries.

Question 6. Read the following lines from the Arthashastra—

Answer: ‘The annual salary of 60 panas could be replaced by one adhaka of grain per day, which was sufficient for four meals...’ (One adhaka is approximately equal to 3 kilograms). What does this tell us about the value of one pana? The penalty for not helping a neighbour was 100 panas. Compare this with the annual salary. What conclusion can you draw about the human values that were being encouraged through this?

This line shows that the value of one pana was quite significant, because 60 panas are described as being equal to the salary for an entire year.

The penalty for not helping a neighbour was 100 panas, which was more than the annual salary of 60 panas. This shows that people in society were encouraged to help their neighbours, cooperate and remain responsible towards one another.

Question 7. Write and perform a play showing how people might have been persuaded to use cowrie shells, shells (and such other items) as a medium of exchange?

Answer: Theme of the play: Exchange through Cowrie Shells

Farmer: I have grain, but I need cloth.

Trader: I have cloth, but I do not need grain.

Farmer: Direct exchange between us is difficult.

Trader: Why don't we use cowrie shells?

Farmer: That is a good idea. I will give my grain in exchange for cowrie shells.

Trader: And I will give you cloth in exchange for those cowrie shells.

Farmer: This will make it easier for us to obtain the things we need.

Narrator: In this way, items such as cowrie shells and shells could have been accepted as a medium of exchange.

Question 8. In India, the Reserve Bank of India (RBI) is the only legal source for printing and distributing paper currency. The Reserve Bank of India has taken several security measures to prevent the illegal printing and misuse of notes. Find out some of these measures and discuss them in your class.

Answer: Security measures taken by the Reserve Bank of India to prevent the illegal printing and misuse of notes are—

On a genuine note, there is an electrotype watermark of Mahatma Gandhi's portrait and the denomination, which becomes clearly visible when held against light.
There is a thread in the middle of the note on which 'RBI' and 'भारत' are written. When the note is slightly tilted, its colour changes from green to blue.
The technology used for printing notes, paper and ink is produced within the country to reduce external risks.
There are provisions for action against those who print or use counterfeit notes under strict legal provisions such as the Bharatiya Nyaya Sanhita (BNS) and UAPA.

Question 9. Interview some members of your family and local shopkeepers and ask them whether they would prefer cash or UPI for making or receiving payments and why?

Answer: Some members of my family and local shopkeepers may prefer UPI because it allows payments to be made easily without carrying cash. By scanning a QR code, the payment can be sent directly to the bank account. Some people may also find cash convenient for small transactions.

Important Questions and Answers

Question 1. What is the barter system?

Answer: In the barter system, one good or service is taken in exchange for another good or service without using money. For example, taking an extra pencil in exchange for extra rubber.

Question 2. What items were used for barter in ancient times?

Answer: Cowrie shells, shells, salt, tea leaves, tobacco, cloth, livestock, seeds, etc. were used for exchange.

Question 3. What was the biggest problem of the barter system?

Answer: A person had to find another person who wanted his goods and who could give in return the goods that he needed. This is called the double coincidence of wants.

Question 4. What is the double coincidence of wants?

Answer: When two people have goods that each other needs and both are willing to exchange them directly, it is called the double coincidence of wants.

Question 5. What was the problem of a common measure of value in barter?

Answer: It was difficult to determine the appropriate value of different goods. It was difficult to decide how much of one good should be given in exchange for another good.

Question 6. What was the problem of divisibility in barter?

Answer: Some goods could not be divided into smaller parts or it was not easy to do so. For example, it is not possible to take a sweater by giving only some part of a bull.

Question 7. What was the problem of portability in barter?

Answer: It was difficult to carry large or heavy goods from one place to another. For example, carrying a bull or many sacks of wheat could be difficult.

Question 8. What was the problem of durability in barter?

Answer: It was not possible to preserve some goods for a long time. For example, wheat could spoil or rats could eat it.

Question 9. Why was money needed?

Answer: Money was needed to overcome the problems of the barter system. Money made transactions easier and made trade more convenient.

Question 10. What is money?

Answer: Money is a common medium that people accept and use for making payments for goods and services.

Question 11. What are the main functions of money?

Answer: The main functions of money are—

To act as a medium of exchange.
To act as a common measure of value.
To store value.
To act as a means of payment in the future.

Question 12. How does money function as a store of value?

Answer: Compared to goods, money can be kept safely for a long time. Therefore, it can be saved and used for purchases in the future.

Question 13. How does money work as a common measure of value?

Answer: With the help of money, the values of different goods and services can be measured and compared. For example, one book may cost ₹100 and another may cost ₹200.

Question 14. What is the standard of deferred payment?

Answer: When money is used to determine a payment that is to be made in the future, it is called the standard of deferred payment.

Question 15. Where can barter still be seen today?

Answer: The Jonbeel Mela held in the Morigaon district of Assam is an example of barter. Here, local people exchange different goods with one another.

Question 16. What is the Jonbeel Mela?

Answer: Jonbeel Mela is a three-day annual socio-cultural fair held in the Morigaon district of Assam. The tradition of barter can still be seen here.

Question 17. What forms of money were used in ancient times?

Answer: Cowrie shells, shells, stone money, metal coins and other objects were used as forms of money. Over time, coins, paper currency and digital money developed.

Question 18. Why were coins important as money?

Answer: Coins made transactions easier compared to barter. Coins issued by powerful rulers began to be accepted in other states as well, which encouraged trade.

Question 19. What were the main features of ancient Indian coins?

Answer: Ancient coins were made of gold, silver, copper and their alloys. Various symbols, natural figures, and figures of kings, queens, gods and goddesses were engraved on them.

Question 20. How did the use of coins benefit India's trade?

Answer: Coins accepted in different regions made trade easier. Foreign coins found in India show that India had trade relations with other regions.

Question 21. Why was paper currency needed?

Answer: It was difficult to carry and safely store large quantities of coins. Therefore, paper currency became more convenient for high-value transactions.

Question 22. Where was paper currency first used?

Answer: Paper currency was first used in China, and its use in India began at the end of the 18th century.

Question 23. Who has the authority to issue currency in India?

Answer: The Reserve Bank of India (RBI) is the central authority that controls the issuance of currency in India.

Question 24. What is digital currency?

Answer: A form of money that exists in electronic form and which we generally cannot touch is called digital currency.

Question 25. What methods of digital payment are mentioned in the chapter?

Answer: Debit cards, credit cards, QR codes, net banking and UPI are mentioned as the major methods of digital payment.

Question 26. What is a QR code?

Answer: A QR code is a pattern of black and white squares that can be scanned using a smartphone. It is used for monetary transactions.

Question 27. How does UPI work?

Answer: With the help of UPI, money can be transferred directly from one person's bank account to another person's bank account.

Question 28. Explain the journey of the development of money in sequence.

Answer: The development of money took place gradually. First came barter, then the use of cowrie shells and other goods, followed by metal coins, paper currency, and in the present time, digital payment methods developed.

Question 29. Who designed the ‘₹’ symbol?

Answer: The ‘₹’ symbol of the Indian rupee was designed by Uday Kumar. The Government of India approved it in the year 2010.

Question 30. What is the connection of the word ‘Pana’ with present-day languages?

Answer: According to the chapter, the word ‘Panam’ is still used for ‘Pana’ in Tamil, Telugu and Malayalam, while the word ‘Hana’ is used in Kannada.

Think About It, Let's Explore and Don't Miss Out

Question 1. What problems did the farmer face in the barter system?

Answer: The farmer had a bull, but he needed shoes, a sweater and medicines. He had to find different people who were willing to take the bull or the goods received in exchange for it and give him the things he needed. This took a lot of time and effort.

Question 2. Why was it difficult for the farmer to get shoes, a sweater and medicines directly in exchange for the bull?

Answer: For this, he had to find a person who had all these items and who wanted to take the bull in exchange. It was difficult to find such a situation easily.

Question 3. What additional difficulty would the farmer face if he took wheat in exchange for the bull?

Answer: He would have to take the sacks of wheat to different places and exchange them for shoes, a sweater and medicines. There would also be a problem of safely storing the remaining wheat.

Question 4. Why was it difficult to decide the proper exchange ratio between two goods in barter?

Answer: Because there was no common standard to decide how much of one good was equal to another good. Therefore, there could be a long discussion between the two parties.

Question 5. How could money make the farmer's situation easier?

Answer: The farmer could sell his bull or other goods in exchange for money. Then he could use that money to buy shoes, a sweater and medicines from different shopkeepers. In this way, he would not have to directly exchange goods for goods.

Question 6. Has the barter system completely disappeared today?

Answer: No. Even today, the tradition of barter exists in some places. Jonbeel Mela, Assam, is an example of this.

Question 7. What types of goods are exchanged at Jonbeel Mela?

Answer: Local products such as tubers and roots, vegetables, fruits, herbs and spices are exchanged. Hand-made items and handicrafts are also available at the fair.

Question 8. Where and for how long is Jonbeel Mela organised?

Answer: It is a three-day annual socio-cultural fair organised in the Morigaon district of Assam.

Question 9. Why is book exchange a good way to obtain books without money?

Answer: In this, a person can exchange a book they have already read for another person's book. This allows them to read a new book without spending money.

Question 10. What is the “double coincidence of wants” in the barter system?

Answer: When one person has a good that another person needs and the other person has a good that the first person needs, they can exchange the goods directly. This is called the double coincidence of wants.

Question 11. What problem was caused by the lack of a “common measure of value” in barter?

Answer: It was difficult to compare the values of different goods. For example, it was difficult to decide how much wheat would be appropriate in exchange for one pair of shoes.

Question 12. What was the problem of divisibility in the example of the bull?

Answer: The farmer could not give only a part of the bull to obtain a sweater or another small item. Therefore, it was not possible to divide the bull for small needs.

Question 13. What was the problem of portability in the example of the bull?

Answer: It was difficult to take the bull from one place to another. Therefore, it was not a convenient means for exchange.

Question 14. What was the problem of durability in the example of wheat?

Answer: It was difficult to store wheat safely for a long time because it could spoil or rats could eat it.

Question 15. If the farmer gets shoes, a sweater and medicines all together in exchange for the bull, would the problem be completely solved?

Answer: It is difficult for such a situation to arise in the first place. He would have to find a person who wanted the bull and was willing to give exactly all three of these items in exchange. Therefore, such a situation is not easily found in barter.

Question 16. If some part of one good has to be given in exchange for another good, what problem arises?

Answer: The problem of divisibility arises. It is not possible or useful to divide every good into smaller parts.

Question 17. If you have to carry a large quantity of a good to another place, what problem would arise?

Answer: The problem of portability would arise because it is difficult to easily carry heavy or large goods from one place to another.

Question 18. How can the use of money solve the farmer's problem of storage?

Answer: If the farmer receives money instead of wheat, he can keep the money for a long time and later buy the goods he needs.

Question 19. Is the barter system still used today?

Answer: Yes. Although money has replaced barter in most places, this tradition can still be seen in some places. Jonbeel Mela is an example of this.

Question 20. What is the practice of taking new utensils in exchange for old clothes?

Answer: In this practice, the seller takes old clothes and gives new utensils or other household goods in exchange. This is an example of barter.

Question 21. How is the arrangement of taking utensils in exchange for old clothes beneficial to both parties?

Answer: The family gets rid of unnecessary old clothes and receives useful utensils in exchange. The seller can resell the old clothes, reuse them or recycle them.

Question 22. How does the exchange of old clothes promote recycling?

Answer: Old clothes can reach the seller and be reused or recycled. This makes the reuse of goods possible.

Question 23. What pictures or symbols were made on ancient coins?

Answer: Figures of animals, trees, mountains, kings and queens, gods and goddesses, and other symbols were made on the coins.

Question 24. What do foreign coins found in India tell us about ancient trade?

Answer: Foreign coins found in India show that India had trade relations with other regions and countries. In particular, they indicate the trade relations of South India with other parts of the world.

Question 25. What important fact is given about the ‘₹’ symbol?

Answer: The Government of India accepted the ‘₹’ symbol in the year 2010. It was designed by Uday Kumar. It is a combination of the Devanagari ‘र’ and the Roman ‘R’.

Question 26. What is one important difference between old coins and present-day coins?

Answer: Ancient coins were made of metals such as gold, silver and copper, and various figures were engraved on them. Present-day coins are mainly made of metal alloys and have a fixed denomination and other information engraved on them.

Question 27. Why is paper currency more convenient than coins for large transactions?

Answer: It is difficult to carry and safely store a large number of coins. Paper notes make it possible to carry a greater value in less space.

Question 28. Why can digital payment be considered a new stage in the development of money?

Answer: Now, coins or notes are not always required for making payments. Payments can be made electronically through methods such as QR codes, debit cards, credit cards, net banking and UPI.

Question 29. How is payment made through a QR code?

Answer: The customer scans the shopkeeper's QR code using a mobile phone and makes a digital payment. The payment can reach the concerned bank account directly.

Question 30. What is the main point we learn from the chapter about the development of money?

Answer: The form of money has changed over time. It developed from barter → commodity-based money → metal coins → paper currency → digital payments. Its main purpose has been to make transactions easier and more convenient.

Class 7 new ncert Chapter 11 SST Solution - From Barter to Money