Question Answers for Chapter 11 From Barter to Money Class 7 Social Science Exploring Society: India and Beyond
Class 7 Social Science From Barter to Money Extra Questions
Very Short Answer Questions
Question 1. What is the barter system?
Answer
The barter system is the direct exchange of goods or services without using money.
Question 2. What was the primary problem with the barter system?
Answer
The main problem was the double coincidence of wants.
Question 3. How does money solve the problems of the barter system?
Answer
Money solves these problems by being portable, divisible, durable, and a standard measure of value.
Question 4. What does "money as a store of value" mean?
Answer
Money can be saved and used later, unlike perishable goods.
Question 5. Who was John Maynard Keynes?
Answer
John Maynard Keynes was an economist who said that money connects the present to the future by helping us save and spend later.
Question 6. What is the ‘double coincidence of wants’?
Answer
Double coincidence of wants means both parties in a trade must want what the other offers, which is rare and difficult.
Question 7. How is money more useful than goods in the barter system?
Answer
Money is portable, divisible, and accepted by everyone, unlike goods which may not be easily traded or split.
Question 8. What does "common denomination" mean in the context of money?
Answer
Common denomination means money is used to measure the value of goods, making it easy to compare prices.
Question 9. What is a "standard of deferred payment"?
Answer
A standard of deferred payment means money can be used to make payments later, as in buying goods on credit.
Question 10. What are "Rai stones"?
Answer
Rai stones were large stone discs used as money in Micronesia, symbolizing wealth.
Question 11. Why were coins important in the history of money?
Answer
Coins were important because they provided a standardized, easily recognizable form of money made from precious metals like gold and silver.
Question 12. What were "karshapanas" in ancient India?
Answer
Karshapanas were ancient Indian coins made from precious metals, used for transactions in the Mauryan Empire.
Question 13. What was the role of the Roman coins in India?
Answer
Roman coins found in Tamil Nadu and Kerala show that India had strong maritime trade connections with the Roman Empire.
Question 14. When was paper currency introduced in India?
Answer
Paper currency was introduced in India in the late 18th century by banks like the Bank of Bengal and Bank of Bombay.
Question 15. What are modern banknotes in India made of?
Answer
Modern Indian banknotes are made of cotton paper, with special features like raised marks for the visually impaired.
Question 16. What is digital money?
Answer
Digital money refers to intangible money that exists electronically, such as through mobile payments or bank transfers.
Question 17. What is the Unified Payments Interface (UPI)?
Answer
UPI (Unified Payments Interface) is a digital payment system that enables instant transfer of money between bank accounts using smartphones.
Question 18. What was the first form of paper currency used in India?
Answer
Paper currency was introduced in India in the late 18th century by banks like the Bank of Bengal and Bank of Bombay.
Short Answer Questions
Question 1. What problems did the barter system have that led to the need for money?
Answer
The barter system had issues like double coincidence of wants, where both parties needed to have what the other wanted. It also lacked a common standard of value, and goods like cattle were not portable or divisible, making trade slow and inefficient.
Question 2. Why was the barter system not effective for long-distance trade?
Answer
The barter system was ineffective for long-distance trade because goods like cattle were hard to transport, and the double coincidence of wants was difficult to find.
Question 3. What were the limitations of the barter system that money helped overcome?
Answer
The barter system had limitations such as the double coincidence of wants, where both parties needed to have what the other wanted, and issues with portability, divisibility, and durability. Money solved these problems by offering a universally accepted, portable, divisible, and durable means of trade.
Question 4. Explain the difference between the barter system and money.
Answer
The barter system required a mutual need for goods, while money is a common, portable, and divisible medium of exchange, making trade more efficient.
Question 5. Why did early societies use items like cowrie shells and Rai stones as money?
Answer
Early societies used items like cowrie shells and Rai stones as money because they were valuable, durable, and could be easily traded. These items were widely accepted in their respective regions as a form of exchange.
Question 6. How did the advent of coins change trade in ancient India?
Answer
The advent of coins in ancient India made trade more efficient by providing a standardized, portable, and durable form of money. Coins made from metals like gold, silver, and copper were easy to carry and were accepted across regions, promoting wider trade networks.
Question 7. What was the significance of the introduction of paper currency in India?
Answer
The introduction of paper currency in India provided a more convenient way to handle large sums of money, especially for higher denominations. It made trade easier and reduced the need to carry heavy coins, facilitating smoother transactions.
Question 8. How does digital money work, and how has it impacted modern transactions?
Answer
Digital money works through electronic systems like mobile payments, bank transfers, and online banking. It has made transactions faster, easier, and more accessible, reducing the need for physical money and increasing convenience for users.
Question 9. What is UPI, and how does it simplify payments?
Answer
UPI (Unified Payments Interface) is a digital payment system that allows users to transfer money instantly between bank accounts using their mobile phones. It simplifies payments by linking multiple bank accounts to a single app and facilitates easy transactions.
Question 10. How do QR codes facilitate digital payments in modern commerce?
Answer
QR codes facilitate digital payments by providing a quick and secure way to transfer money from one person’s bank account to another. By scanning the code with a smartphone, payments can be made instantly, making transactions more efficient.
Question 11. How does money address the issue of portability in trade?
Answer
Money addresses the issue of portability in trade by:
- Being easily carried and transferred, unlike bulky goods.
- Allowing for quick transactions without the need for bartering items.
- Enabling individuals to store value for future use, making it a convenient medium of exchange.
Question 12. What symbols were typically engraved on ancient Indian coins?
Answer
Ancient Indian coins featured a variety of symbols and motifs on both sides. These included:
- Nature motifs such as animals, trees, and hills.
- Images of kings or queens.
- Depictions of deities.
For instance, coins from the Chalukyas displayed a Varaha image (an avatar of Vishnu) on one side and a decorated three-tiered parasol on the other.
Long Answer Questions
Question 1. How did the introduction of coins benefit ancient India’s economy and trade?
Answer
Coins helped facilitate trade by offering a standardized, easily portable, and widely accepted form of money.- In ancient India, coins made from precious metals like gold, silver, and copper were used for transactions.
- The use of coins allowed for easier trade within the region and with foreign countries, such as during the Roman trade. The presence of coins helped stimulate economic activity and provided a stable basis for conducting business.
Question 2. What are the functions of money, and how do they help the economy?
Answer
- Money serves as a medium of exchange, a store of value, a common denomination for measuring the value of goods, and a standard of deferred payment.
- These functions help simplify trade by providing a common tool for transactions, enabling people to save wealth for future use, compare prices, and make payments over time.
- The functions of money contribute to economic stability by making transactions smoother and more predictable.
Question 3. How did the transition from barter to money impact social and cultural life?
Answer
- The transition from barter to money made trade more efficient, allowing for greater social interaction and the expansion of economies.
- With the ability to store wealth and trade more easily, people could engage in more diverse economic activities, from farming to craftsmanship.
- This shift also led to greater cultural exchanges, as people could now trade goods across longer distances, influencing art, philosophy, and other cultural aspects.
Question 4. Explain how digital payment methods solve the problems of the barter system.
Answer
Digital payment methods offer significant advantages over the traditional barter system:
- Efficiency: Transactions are quicker and do not require finding a direct match for goods or services.
- Convenience: Payments can be made anytime and anywhere using devices like smartphones or computers.
- Security: Digital payments reduce the risk of theft and loss associated with carrying physical goods or cash.
- Record Keeping: Electronic transactions provide automatic records, making it easier to track spending and manage finances.
Question 5. How has the rise of digital money impacted traditional systems of payment?
Answer
- The rise of digital money has transformed traditional payment systems by providing faster, more convenient alternatives like mobile payments, credit and debit cards, and online banking.
- Digital money has made transactions quicker and more accessible, especially for online shopping, reducing the need for physical currency. It has also expanded financial inclusion by allowing people in remote areas to access banking services through smartphones and the internet.
Question 6. How did the development of trade routes impact the evolution of money and currency?
Answer
- The development of trade routes, such as those connecting India to the Roman Empire, encouraged the need for a standardized form of money.
- Trade across long distances required a universal medium of exchange that could be easily carried and recognized. This led to the invention of coins, which facilitated smoother and more secure transactions.
- Over time, the growth of trade networks and the increasing complexity of economies led to the evolution of paper money and, later, digital currency.
Question 7. Match the Column A with the correct option in Column B.
|
Column A |
Column B |
|
1. Double coincidence of wants |
(a) A form of money used in ancient India |
|
2. UPI |
(b) Money can be stored for future use |
|
3. Karshapanas |
(c) Two parties need exactly what the other wants |
|
4. Store of Value |
(d) A system for transferring money digitally |
|
5. Barter System |
(e) The exchange of goods and services directly |
Answer
|
Column A |
Column B |
|
1. Double coincidence of wants |
(c) Two parties need exactly what the other wants |
|
2. UPI |
(d) A system for transferring money digitally |
|
3. Karshapanas |
(a) A form of money used in ancient India |
|
(b) Money can be stored for future use |
(b) Money can be stored for future use |
|
5. Barter System |
(e) The exchange of goods and services directly |
Explanations:
- 1 → c: Double Coincidence of Wants means both parties need what the other offers.
- 2 → d: UPI is a system for transferring money digitally.
- 3 → a: Kārshāpanas were coins used in ancient India for transactions.
- 4 → b: Store of value means money can be saved for future use.
- 5 → e: Barter system is the direct exchange of goods and services.
Question 8. How did the use of coinage enhance India’s maritime trade?
Answer
The use of coinage significantly enhanced India's maritime trade in several ways:
- Standardisation: Coins provided a consistent medium of exchange, making transactions simpler and more efficient.
- Wider Acceptance: Coins issued by powerful rulers were accepted across various kingdoms, facilitating trade beyond local borders.
- Trade Evidence: Archaeological findings of coins in regions like Kerala and Tamil Nadu indicate active trading with other countries.
- Economic Growth: The ability to trade more easily contributed to the economic prosperity of southern India.
Question 9. Explain the socio-cultural significance of the Junbeel Mela.
Answer
The Junbeel Mela is a significant socio-cultural event in Assam, India, with deep historical roots. It serves various important functions:
- Junbeel Mela is a traditional fair in Assam that promotes social harmony among tribes like Tiwa, Karbi, Khasi, and Jaintia.
- It revives the ancient barter system, encouraging exchange of local goods without money.
- The mela preserves cultural heritage through rituals like Agni Puja and showcases traditional art, music, and customs.
Question 10. Analyze the problems of the barter system that necessitated the invention of money.
Answer
The barter system had several significant problems that led to the need for money:
- Double coincidence of wants: Both parties needed to have what the other wanted, making exchanges difficult.
- Lack of common measure: There was no standard way to value goods, complicating trade.
- Indivisibility: Some goods could not be easily divided into smaller parts for trade.
- Storage issues: Perishable items could not be stored for long periods, leading to waste.
- Transport difficulties: Carrying large quantities of goods was cumbersome and impractical.
These limitations highlighted the need for a more efficient medium of exchange, ultimately leading to the invention of money.
Question 11. Evaluate the role of money’s evolution in shaping India’s trade and economy.
Answer
The evolution of money has significantly influenced India's trade and economy over the centuries. Here are the key points regarding its role:
- Barter Limitations: Before money, the barter system was used, which had limitations such as the need for a double coincidence of wants. This made trade cumbersome.
- Introduction of Coins: Ancient Indian coins, made from precious metals like gold and silver, were introduced to facilitate easier transactions. They were widely accepted across different kingdoms.
- Trade Expansion: The acceptance of coins from powerful rulers allowed for increased trade across regions, enhancing economic interactions.
- Medium of Exchange: Over time, money evolved from coins to paper currency and now includes digital forms, making transactions more efficient.
- Global Trade: The evolution of money has enabled India to engage in international trade, boosting its economy and connecting it with global markets.
In summary, the evolution of money has transformed India's trade practices and economic structure, facilitating smoother exchanges and expanding trade opportunities.