Class 7 Social Science From Barter to Money

Class 7 Social Science From Barter to Money

Questions & Short Answers

1. What is the barter system?

  • The barter system is a system of exchange where goods and services are directly traded without using money.

2. What was the main problem with the barter system?

  • The double coincidence of wants, meaning both parties had to want what the other offered.

3. How did money solve the problems of the barter system?

  • Money became a universal medium of exchange, allowing easy comparison of value and trade.

4. What are the main functions of money?

  • Medium of exchange, measure of value, store of value, and unit of account.

5. What were the first forms of money?

  • Cowry shells, metal coins, and gold were some of the earliest forms of money.

6. Where and when were coins first used as money?

  • Coins were first used in ancient Mesopotamia and India.

7. How did paper money come into use?

  • Paper money originated in China during the Tang Dynasty (7th-10th century CE) and spread to other regions.

8. What is digital money?

  • Digital money includes credit cards, digital wallets, and electronic banking, used for online transactions.

9. How is money used in modern economies?

  • Money is used for buying and selling goods and services, and is managed by central banks and governments.

10. What is the role of the reserve bank in money management?

  • The reserve bank controls the supply of money, sets interest rates, and manages the country’s currency.