From Barter to Money Class 7 Extra Questions and Answers SST Chapter 11

Reviewing the Class 7 SST Extra Questions and Class 7 SST Chapter 11 From Barter to Money Extra Questions before exams can boost your confidence.

From Barter to Money Class 7 Extra Question Answer

Extra Questions of From Barter to Money Class 7

From Barter to Money Class 7 Very Short Question Answer

Question 1.
Define the barter system.
Answer:
The barter system is an exchange of goods and services for other goods and services.

Question 2.
Write at least one major limitation of the barter system.
Answer:
Double coincidence of wants.

Question 3.
What is meant by ‘medium of exchange’?
Answer:
A medium of exchange means to buy and sell goods and services easily.

Question 4.
Name the institution that issues currency notes in India.
Answer:
Reserve Bank of India (RBI).

Question 5.
Which metal was commonly used in ancient Indian coins?
Answer:
Gold, silver, or copper.

Question 6.
What does the? symbol combine?
Answer:
Devanagari ‘Ra’ and Roman ‘R’.

Question 7.
Give one example of commodity money.
Answer:
Cowrie shells.

Question 8.
What is digital money?
Answer:
Money which is in electronic form is called digital money.

Question 9.
Which ancient Indian coin was also called pana?
Answer:
Ka??hapana.

Question 10.
What is meant by store of value?
Answer:
This is the ability of money to be used later.

Question 11.
What does ‘common denomination’ mean?
Answer:
This is the ability of money to compare the value of goods and services.

Question 12.
What does ‘portability’ of money mean?
Answer:
This is the property of money to carry anywhere easily.

Question 13.
Where is in India the Junbeel Mela held?
Answer:
In Assam.

Question 14.
What is the meaning of ‘durability’ in the context of money?
Answer:
Money lasts long without getting spoiled.

Question 15.
Name one ancient dynasty whose coins showed a tiger symbol.
Answer:
The Chola dynasty.

Question 16.
How many annas made one rupee before 1957?
Answer:
16 annas.

Question 17.
What is the use of QR codes in payments?
Answer:
The use of QR code: To pay directly or immediately from bank accounts.

Question 18.
Which famous economist said money links present and future?
Answer:
John Maynard Keynes.

Question 19.
What type of stones were used as money in Yap Island?
Answer:
Rai stones.

Question 20.
Name the earliest form of exchange.
Answer:
The barter system

Question 21.
What is Rai stone?
Answer:
Giant discs of rock were used as money on Yap Island, in the Pacific country of Micronesia.

Question 22.
What is the Aztec copper Tajadero (Spanish word for chopping knife)?
Answer:
A form of money used in Central Mexico and parts of Central America.

Question 23.
What is the use of Tevau?
Answer:
Tevau is used as money in the Solomon Islands.

Question 24.
What is Tevau?
Answer:
Tevau is a Red feather coil made from birds’ feathers.

Question 25.
Name the items bartered by the people of Assam and Meghalaya.
Answer:
Roots, vegetables, fruits, herbs, and spices.

Question 26.
Name the word used in Kannada for money.
Answer:
‘hana’

Question 27.
The present-day coins are made of alloys; name the metals used to mint the coins.
Answer:
Iron, chromium, silicon, and carbon in precise proportions.

Question 28.
What is featured on the coinage of the Chalukyas of Kalyana?
Answer:
Varaha (avatar of Vishnu) and Royal Parasol

Question 29.
In which year the Government of India adopt the sign?
Answer:
In 2010

Question 30.
Who designed the sign ??
Answer:
Shri Udaya Kumar from the Indian Institute of Technology, Bombay (Mumbai).

Question 31.
What is used as money for smaller denominations?
Answer:
Coins

Question 32.
What is used as money for higher denominations?
Answer:
The paper currencies

From Barter to Money Class 7 Short Question Answer

Question 1.
Define the barter system. Explain with an example.
Answer:
The barter system: It is the system in which people exchange goods or services for other goods and services. It is the oldest method of exchange.
For example, if a person has extra wheat and needs a pair of shoes, they would find someone who has a pair of shoes and needs wheat. Both would then exchange these items.
It was mainly used before money was invented.

Question 2.
Why do people need for money?
Answer:
People need money because :

• The oldest method of exchange (barter system) had several problems.
• It was difficult to find the person who wanted your items and had the items that you needed.
• There was no way to measure the value of different items, and some goods could not be divided or carried easily.

Question 3.
What are the main functions of money?
Answer:
The main functions of money are as follows :

• It acts as a common medium of exchange, used for buying and selling.
• It acts as a store of value, meaning it can be saved for future use.
• It serves as a common denomination and enables people to compare goods and services in terms of their prices.
• It is accepted as a way of making deferred payments. It enables people to buy now and pay later.

Question 4.
What is meant by ‘double coincidence of wants’? Why was it considered a problem?
Answer:
Double coincidence of wants means that in a barter system, two people’s wants should be the same as the other person’s wants.
For example; if you want shoes and have spare rice, you must find someone who has shoes and wants rice.
Why it was considered a problem:

• Because such perfect matches were rare and very difficult.
• Because such an act is time-consuming.

Question 5.
Why is money considered better than the barter system?
Answer:
Money is considered better than barter system because :

• It removes the need for a double coincidence of wants.
• It is easier to carry, divide, store, and use.
• Money has a fixed value, which makes trading fair and easy.
• It also helps people buy now and pay later, which was not possible with goods.

Question 6.
What were karshapanas or panas?
Answer:

• Karshapanas or panas were ancient Indian coins made of metals like gold, silver, or copper.
• These coins were used for trade and had symbols like animals or gods.
• They made trading easier and were accepted in many regions.
• The word “pana” is still used in some Indian languages like Tamil (“panam”) and Kannada (“hana”).

Question 7.
Write in brief about the role of the Reserve Bank of India (RBI) in money matters.
Answer:
The role of the Reserve Bank of India in money matters :

• The Reserve Bank of India (RBI) is the only institution that can issue currency in India.
• The RBI ensures the legality of currency as well as the safety of currency.
• The RBI adds features in notes to help visually impaired people recognize denominations.
• The RBI controls the money supply in the country to keep the economy stable.

Question 8.
How has digital money changed the way we use money today?
Answer:
Digital money has changed the way we use money today in the following manners :

• Digital money has made transactions faster and easier.
• People now use mobile apps, debit and credit cards, and QR codes to make payments directly from bank accounts.
• This reduces the need for cash.
• With digital money, you can pay bills, buy goods, and transfer money anytime from your phone or computer.

Question 9.
How does money connect our present to our future, according to Keynes?
Answer:
According to John Maynard Keynes, money connects our present to our future in the following manner :

• It can be saved for the future and used later.
• It does not spoil like perishable items like vegetables or grains.
• It helps us plan for future needs like education, emergencies, retirement, etc.

From Barter to Money Class 7 Long Question Answer

Question 1.
The continuation of the barter system was not good, why? Explain. Why did we feel a necessity for another alternative that solved the problems? What was that alternative? What happens when money is introduced?
Answer:
The continuation of the barter system was not good because :

• It was full of challenges like double coincidence of wants, lack of divisibility, portability etc.
• It cannot help in the progress of the economy.
• It is not good for multilateral trade.
• It is not satisfactory for both buyers and sellers.
• It raises issues of several types.
• It is not justifiable.

Necessity felt for another alternative :

• When the number of things, that were being exchanged, grew.
• When the distances became longer across which barter was taking place.

What the alternative was :

• A common medium of exchange-money

What happens when the money is introduced? :

• Money solved most of the problems of the barter system.
• By becoming the common medium of exchange, it acts easily like carrying, dividing, storing, and measuring.
• It made trade faster, more flexible, and more practical.

Question 2.
What are the main functions of money? Explain each with examples.
Answer:
The main functions of money are as follows :
Medium of Exchange :

• Money is accepted everywhere.
• For example, you can buy a notebook for ?50 at a shop using coins or notes.

Store of Value :

• Money can be saved and used later.
• For example; A person can save money in a bank and use it after some time.

Measure of Value :

• Money has its own standard value for all goods and services. It helps in comparing the prices of goods and services.
• For example, if the cost of the pencil is ?5 and the cost of the bag is ?300, we can easily compare which one more costly.

Standard of Deferred Payment :

• Money is accepted as deferred payment. It means money enables people to buy now and pay later.
• For example, if a customer buys a cooler for ?8,000 and pays in six instalments. The deferred money helps in making such delayed payments possible.

These functions make money more useful in trade, improve the lifestyle of the people and also get rid of the problems faced by man.

Question 3.
Describe the journey of money from ancient times to the digital age.
Answer:
The journey of money from ancient times to the digital age is as follows:
Barter System :

• This is the oldest system of trade.
• People used to exchange their goods and services directly such as rice for shoes.
• It was very tiring and had many problems such as finding the person to trade with.
• For example; Items like salt, tea, cowrie shells, and cattle were used as money in different places.

Coinage :

• The historical period highlights the use of coins by different kingdoms.
• These coins were made from precious metals like gold, silver, copper, and alloys.
• These issued coins were used for transactions by the citizens of their respective kingdoms.

Paper Money :

The paper money was first used by China.
It was introduced in India in the late 18th century.
In India, the RBI is the central agency to issue notes like ?10, ?100, ?500, etc.

Digital Money :

• In the present day, people use debit cards, UPI, QR codes, and apps to transfer money online.
• It is fast and reduces the need for cash.

Question 4.
How has the evolution of money helped trade and society grow?
Answer:
The evolution of money has helped trade and society grow in the following manner :

• It replaced the barter system and made trade easier.
• It helped in growing the long-distance trade as national or international. For example; India traded with the Roman Empire.
• It boomed the local economies and businesses grew locally.
• It helped to run most of the sector smoothly.
• It helped in paying the salaries of professionals like teachers, doctors, workers, etc.
• It maintains the cultural connection and preserves our culture. For example symbols and images on coins and notes.
• It became a medium for technological advancement.

Question 5.
Write about digital forms of money. How has digital money changed the world?
Answer:
Digital forms of money are intangible forms of money that cannot be touched or felt. It is in electronic form and used electronically without physical cash.
For example; Debit and credit cards, UPI apps like PhonePe, Paytm, Google Pay, Net banking and online wallets, QR code payments
How digital money changed the world :

• By making the payment easier and faster.
• By solving the cash-carrying issue.
• By reducing the risk of theft or loss.
• By maintaining a record of every transaction.
• By resolving the problems of paying bills, and sending money without going anywhere.

From Barter to Money Class 7 Case Based Questions

1. Read the following passage carefully and answer the questions that follow :

Although money has replaced traditional barter systems all around the world, there are some that still exist today! One of them is the Junbeel Mela (jun means moon in Assamese and beel means wetland), a three-day annual socio-cultural fair at Junbeel in Morigaon district of Assam. Interestingly, the mela begins with the Agni Puja or worship of fire, a prayer for universal well-being. Beginning in the 15th century, the chiefs of the Tiwa, Karbi, Khasi, and Jaintia tribal communities of Assam and Meghalaya would gather every year to discuss political issues and to maintain friendly relationships. Members of these communities began to gather around this event and soon it turned into a fair, where people would bring their produce and begin exchanging them with each other.

(i) What thing has removed the traditional barter system?
a) The discovery of science
b) The introduction of money
c) The people’s awareness
d) The introduction of facilities
Answer:
b) The introduction of money

(ii) Find the word which means ‘wetland’.
a) Jun
b) Beel
c) Junbeel
d) All of these
Answer:
b) Beel

(iii) What is Junbeel?
a) Socio-cultural fair
b) A fair that starts with a prayer for universal well-being
c) A fair that starts with the worship of fire.
d) All of these
Answer:
d) All of these

Picture Based Questions:

Question 1.
A QR code is lying on the cart of a fruit seller, what form of money is this?
a) A form of money in place of coins and paper notes
b) An intangible form of money
c) Digital money
d) All of these
Ans.
d) All of these

Question 2.
What is the full form of UPI?
a) Unique Payments Interface
b) Unified Payments Interface
c) Unified Payments Instantly
d) Unique Payments Immediately
Ans.
b) Unified Payments Interface

Question 3.
What things do we need to pay through this digital mode?
Answer:
A device like a mobile phone.

Map Based Questions:

Question 1.
Locate the state on the given map where the Junbeel Mela is held, and the barter system is still in use.
Answer:
Assam-C

Question 2.
Locate the state on the given map where Roman coins have been discovered.
Answer:
Tamil Nadu-A

Question 3.
Locate the region on the given map where the headquarters of the Reserve Bank of India is located.
Answer:
Mumbai, Maharashtra-B

Class 7 From Barter to Money Extra Questions for Practice

Very Short Answer Type Questions:

Question 1.
Define QR code.

Question 2.
What do you mean by denominations?

Question 3.
Define obverse.

Short Answer Type Questions:

Question 1.
How can you say the system used for exchanging goods and services was very tough? Justify it.

Question 2.
Compare the barter system with the present-day system where money is used for buying and selling goods and services.

Long Answer Type Questions:

Question 1.
Can you imagine the life before the money was invented? If yes, then narrate a few lines. How is the present-day system better than the previous one?

Passage Based Questions:

As you can see from the timeline, coins were among the earliest forms of money. During those times, rulers would issue coins that were used by the citizens of their respective kingdoms for transactions. So different kingdoms would have their own coinage. The minting and issue of coins was controlled entirely by the rulers. Over time, the coins of powerful rulers were accepted across various kingdoms and not just their own. This facilitated trade across geographies. The coins were made from precious metals like gold, silver, and copper or their alloys. They were called karshapanas or pa?as. They had symbols punched on them called rupas.

Question 1.
Pick out the most suitable word as a title for the above-given paragraph :
(a) Coin
(b) Coinage
(c) Mint
(d) Panas

Question 2.
Why were the coins issued by the rulers?
(a) For transactions
(b) For controlling the citizens
(c) To become rich
(d) To maintain the water system

Picture Based Questions:

Question 1.
Look at the coin very carefully, what has been punched in it?

(a) Indian flag
(b) India’s Independence symbol
(c) India’s 75 years of independence in 2021
(d) None of these

Question 2.
Who designed the symbol ??
(a) Shri Umesh Kumar
(b) Shri Udaya Kumar
(c) Shri D. Ujjawal Kumar
(d) Shri Umang Kumar

Map Based Questions

Locate and label the following things on the given map of India with appropriate symbols.

Question 1.
Locate the state of the Chola Dynasty on the map of India.

Question 2.
Locate the state on the map of India where Chalukya coins with Varaha symbols were found.