This MCQ module is based on: Exercises — From Barter to Money
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Exercises — From Barter to Money
🎓 Class 7
Social Science
CBSE
Theory
Ch 11 — From Barter to Money
⏱ ~15 min
🌐 Language: [gtranslate]
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Ch 11 Exercises — From Barter to Money
📖 Chapter Summary
- The barter system was the earliest form of exchange — people traded goods and services directly without money.
- Barter had major limitations: double coincidence of wants, no common measure of value, and problems of divisibility, portability, and durability.
- Money evolved through stages: commodity money (shells, cattle) → metal coins → paper currency → digital payments (UPI, cards).
- Money serves four key functions: medium of exchange, common measure of value, store of value, and standard of deferred payment.
- The RBI is the sole authority to issue currency in India. Modern digital payment systems like UPI have transformed how transactions are conducted.
NCERT Questions
Q1. L2
How does the barter system work and what kinds of commodities were used for exchange?
Answer: In barter, people directly exchanged goods/services for other goods/services without money. Commodities used included cowrie shells, salt, tea, tobacco, cloth, cattle (cows, goats, horses, sheep), seeds, stone discs (Rai stones in Micronesia), copper blades (Tajadero by Aztecs), and red feather coils (Tevau in Solomon Islands).
Q2. L3
What were the limitations of the barter system?
Answer: Five key limitations: (1) Double coincidence of wants — both parties must want what the other has; (2) No common standard measure of value — no agreed way to compare the worth of different goods; (3) Problem of divisibility — cannot split an ox for a smaller exchange; (4) Problem of portability — heavy goods are difficult to carry everywhere; (5) Problem of durability — perishable goods like wheat can rot.
Q3. L3
What were the salient features of ancient Indian coins?
Answer: Ancient Indian coins (called karshapanas or panas) were made from precious metals like gold, silver, copper, or their alloys. They had symbols (rupas) punched on them. The obverse (head) and reverse (tail) sides featured nature motifs (animals, trees, hills), images of kings/queens, and deities. For example, Chalukya coins had a Varaha image and royal parasol; Chola coins bore tiger emblems.
Q4. L4
How has money as a medium of exchange transformed over time?
Answer: Money evolved through several stages: (1) Barter — direct exchange of goods (~6000 BCE); (2) Commodity money — cowrie shells, cattle (~1000 BCE); (3) Metal coins — standardised value, issued by rulers (~600 BCE); (4) Paper currency — lighter, representing larger values (1861 in India); (5) Digital money — debit/credit cards (~1980s), UPI payments (2016). Each stage addressed limitations of the previous form, making transactions faster, easier, and more accessible.
Q5. L4
What steps might have been taken in ancient times so that Indian coins could become the medium of exchange across countries?
Answer: Powerful rulers ensured their coins were of high quality and consistent weight/purity. Maritime trade routes were established, particularly from southern India's ports. Coins from powerful empires gained trust across borders. Roman gold coins found in Tamil Nadu prove that international trade flourished, and Indian coins were accepted widely due to their reliable metal content and the reputation of Indian goods.
Q6. L4
From the Arthashastra: "An annual salary of 60 panas could be substituted by an adhaka of grain per day." (1 adhaka ≈ 3 kg). What does this indicate about the value of one pana? The fine for failing to help a neighbour was 100 panas — compare this with the annual salary.
Answer: If 60 panas = one year's salary, then 1 pana ≈ roughly 6 days' grain supply (365 days ÷ 60). The fine of 100 panas for not helping a neighbour is almost twice the annual salary — this indicates that community responsibility and helping one's neighbours was valued extremely highly in ancient Indian society. The severe penalty shows that human values and social cohesion were prioritised.
Q7. L6
Write and enact a skit showing how people may have persuaded each other to use cowrie shells (or similar items) as a medium of exchange.
Hint: The skit could show two traders frustrated by barter failures, then a third person suggesting that everyone agree to accept cowrie shells in exchange. Arguments for shells: they are durable, portable, easy to count, and available in limited supply. The skit could end with the community agreeing to the new system and trading becoming much easier.
Q8. L3
The RBI introduces security features to prevent illegal printing. Find out some of these measures.
Answer: Security features include: watermarks visible when held to light; security threads embedded in the paper; micro-lettering readable only under magnification; colour-shifting ink that changes colour at different angles; raised print on certain areas for tactile identification; serial numbers; fluorescent ink visible under UV light; and latent images visible only at certain angles.
Q9. L3
Interview family members and local shopkeepers about their preferences — cash or UPI? Why?
Guidance: When compiling your report, note common themes: younger people and urban shopkeepers may prefer UPI for convenience and record-keeping; older people and rural shopkeepers may prefer cash for simplicity and reliability (no internet needed). Compare the advantages and disadvantages each group mentions.
Frequently Asked Questions
What are the important questions in Class 7 Economics Exercises — From Barter to Money?
The exercise section of Class 7 Economics covers competency-based questions aligned with CBSE CBQ format. These include multiple-choice questions testing analysis and application skills, assertion-reason questions requiring logical reasoning, and short and long answer questions that develop critical thinking. Students should practise all question types to prepare for board examinations.
How should I prepare for Class 7 Economics exercises?
To prepare effectively, first read the complete NCERT chapter thoroughly. Then attempt the exercises without referring to the textbook. Check your answers against the NCERT solutions. Focus on understanding concepts rather than memorising answers. Practise CBQ-format questions as they test higher-order thinking skills like analysis, evaluation, and application.
Are NCERT exercises enough for Class 7 Economics board exam preparation?
NCERT exercises form the foundation of board exam preparation for Class 7 Economics. CBSE recommends NCERT as the primary textbook, and most board questions are based on NCERT content. However, students should also practise competency-based questions and assertion-reason questions in the latest CBSE format to score well.
What is the CBQ format in Class 7 Economics?
CBQ stands for Competency-Based Questions, introduced by CBSE to test higher-order thinking skills. These questions present a passage, data, or case study followed by questions that require students to analyse, evaluate, or apply their knowledge rather than simply recall facts. CBQ questions are an important part of the current CBSE examination pattern.
How many marks are exercises worth in Class 7 Economics?
In the CBSE board examination for Class 7, Economics carries a significant weightage. The exercises help students practise the types of questions that appear in the exam, including objective questions, short answer questions, and long answer questions. Regular practice of NCERT exercises ensures thorough preparation for all question formats.
What types of questions are included in NCERT Class 7 Economics exercises?
NCERT Class 7 Economics exercises include a variety of question types such as fill in the blanks, true or false, match the following, short answer questions, long answer questions, map-based questions, and activity-based questions. The MyAISchool interactive version adds CBQ-format questions and assertion-reason pairs for comprehensive exam preparation.
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