RBSE Class 7 Social Science Chapter 11 Solutions in English — From Barter to Money

From Barter to Money Class 7 Question Answer SST Chapter 11

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Class 7 SST Chapter 11 From Barter to Money Question Answer

Class 7 Social Science Chapter 11 From Barter to Money Question Answer

From Barter to Money Class 7 Questions and Answers

The Big Question (Page No. 239)

Question 1.
How did exchange take place before money?
Answer:
Before the introduction of currency, exchange took place through the ‘barter system’. In this system, people exchanged their goods and services for other goods and services. This is a method of exchanging goods and services without the use of money. For example, Suppose you need a pencil and have an extra eraser. Meanwhile, your classmate forgot to bring their eraser but has an extra pencil. You could exchange your extra eraser for the extra pencil that your classmate has. This is how the barter system operated.

Question 2.
Why did money come into existence?
Answer:
As the types and numbers of things that were being exchanged grew, and the distances across which barter was beginning to take place became longer, the following problems with the barter system began to cause difficulties in trade. These problems were-

• problem of double coincidence of wants,
• no common standard measure of value,
• problem of divisibility,
• problem of portability and
• problem of durability.

These problems led to the need for a system of exchange in which a common commodity could serve as a medium of exchange. This was because only a common medium of exchange could facilitate trade. Consequently, money came into existence as a common medium of exchange.

Question 3.
How has money transformed into various forms over time?
Answer:
1. Coin system of money-Coins were among the earliest forms of money. The coins were made from precious metals like gold, silver, and copper or their alloys. The minting and issue of coins was controlled entirely by the rulers. The use of coinage helped boost India’s maritime trade with the world.

However, as trade increased and expanded over time, two problems arose with the monetary system of coinage-

• It became difficult to carry a large number of coins.
• Storing the coins also became a problem.

Therefore, to overcome the above-mentioned difficulties of the coin system, paper currency was introduced.

2. Paper Money-Paper money or currency was first used in China and was introduced in India in the late 18th century. Now coins are used for smaller denominations, paper currency is used for higher denominations.

3. New Forms of Money (Digital money)-As time has progressed and technology has advanced, other forms of money have come to be used today, such as QR code, debit cards, credit cards, net banking, UPI, etc. This is called digital money which is in electronic form. Their form is abstract; we can neither touch nor feel them.

Let’s Explore (Page No. 232)

Question.
What are the different types of difficulties (on page 231 and 232 of the textbook) you encountered in the situation above?
Answer:
The given situations relate to the diffi-culties of the barter system. In these situations, we faced the challenges of the double coincidence of wants, common standard measure of value, the indivisibility of goods, and durability issues.

Question.
What are the instances of double coincidence of wants in the above example? In the situation given above, what are the cases where you could encounter the lack of a common standard measure of value?
Answer:
Above given example is of barter system where a farmer wants to exchange an ox for a pair of new shoes, a sweater, and some medicine for his grandmother. Firstly, it’s difficult to find someone who keeps shoes, sweaters, and medicines for exchange. Even if someone does keeps these items, it’s not necessary that they would need an ox in return. In such a situation, a direct exchange is extremely difficult.

For this, he had to go through a series of exchanges; for example, he had to find someone to exchange his ox for several bags of wheat. He would then have to transport all that wheat to several places; first, he had to find someone who is willing to exchange a part of the wheat for shoes, another person for the sweater, and yet another for the medicines.

Thus, the farmer needed four double coincidences to exchange an ox for shoes, a sweater, and medicines. Even in the situation of the above-mentioned coincidences, determining the ratio at which the two commodities should be exchanged becomes difficult because, in such cases, it is hard to compare the value of one commodity with that of the other. The main reason for this is that there is no common measure of value available in these double coincidences.

Think About It (Page No. 233)

Question.
What are the different ways in which money would make the above situation easier for the farmer?
Answer:
Since the farmer wants to exchange his ox for shoes, a sweater, and medicine, he will first sell his ox for money and then easily buy the necessary items from different people using that money. Doing so will free him from the problems of the double coincidence of wants, divisibility, portability, and durability.

Think About It (Page No. 237)

Question.
Suppose you need to buy a book. You have 50 in your pocket. You visit the bookshop in your neighbourhood, where the shopkeeper tells you that the book is worth 100. What options do you have to buy the book today? Will you request the shopkeeper to allow you to make the rest of the payment later?
Answer:
If we have a debit card or credit card, we will pay the remaining 50 rupees with it. Secondly, we will request the shopkeeper to allow us to pay the remaining amount later. Thirdly, as a last option, we will go back home, get another 50 rupees, and then return to the shop to pay the shopkeeper 100 rupees and get the book. This is possible since the shop is located in our neighbourhood.

Let’s Explore (Page No. 238)

Question.
Look at the timeline given below (fig. 11.10, page 238). What are the changes in money that you observe?
Answer:
By observing the currencies shown in the timeline, we have observed the following changes in currency-

1. From 1000 BCE to 600 BCE, cowrie shells were used as currency.
2. From 600 BCE to 1860 CE, metal coins became the form of currency and remained in circulation during this period.
3. From 1861 CE, government-issued paper currency came into circulation.
4. From 1980 CE, digital currency (debit cards, credit cards, etc.) came into use.
5. From 2016 CE, UPI came into use as a form of currency. Currently, metal currency, government-issued paper currency, digital currency, and UPI are all in circulation as forms of currency.

Let’s Explore (Page No. 239)

Question.
The coins shown in Fig. 11.12 were found during excavations in Pudukkottai in Tamil Nadu. Their heads, embossed, are those of Roman kings. What conclusions can we draw from such a finding?
Answer:
Based on this information, we can conclude that these coins reflect the contemporary trade activities of South India with other parts of the world, indicating that India had trade relations with overseas countries at that time. Secondly, this information also suggests that the balance of trade was in India’s favor during that period.

Let’s Explore (Page No. 241)

Question.
What do you think happened as coins began to be used for all types of exchanges, whether to buy vegetables or to buy some land? What problems could have come up?
Answer:
When coins began to be used in all types of transactions, tw o types of problems must have arisen-

1. It became difficult to carry a large number of coins.
2. Storing the coins also became a problem.

Class 7 From Barter to Money Question Answer

Question 1.
How does the barter system take place, and what kinds of commodities were used for exchange under the system?
Answer:
The barter system is a method of exchanging goods and services without the use of money. For example, a farmer might exchange a portion of his grain with a vegetable vendor for vegetables. This could involve exchanging a certain weight of wheat for an equal weight of vegetables, or perhaps twice the weight of vegetables for a given weight of wheat. The terms of the exchange are determined by both parties involved.

In those times, people used items such as cowrie shells, conch shells, salt, tea, tobacco, cloth, livestock, and seeds as mediums of exchange.

Question 2.
What were the limitations of the barter system?
Answer:
Limitations of the barter system are-
1. The limitation of the double coincidence of wants-Barter requires a double coincidence of wants, where one person needs what the other has in surplus, and the other person needs what the first person has in surplus, and both are willing to exchange their surplus goods with each other.

2. No common standard measure of value-It was difficult to compare the value of one good against another because there was no common standard measure of value.

3. Problem of divisibility-People cannot divide large objects to buy smaller one. It shows the problem of divisibility.

4. Problem of portability-Large and heavy goods are difficult to carry at every place for the sake of barter. It indicates the problem of portability.

5. Problem of durability: Perishable goods cannot be stored long. It is lack of durability.

Question 3.
What were the salient features of ancient Indian coins?
Answer:
Salient features of Ancient Indian coins are-

1. The coins were made from precious metals like gold, silver, and copper or their alloys. They were called karshapanas or panas.
2. They had symbols punched on them called rupas.
3. In ancient times, the two sides of the coins-the head and the tail-had different kinds of symbols and motifs engraved on them. These included nature motifs like animals, trees and hills, and those of kings or queens, and deities.

Question 4.
How has money as a medium of exchange transformed over time?
Answer:
For the answer to this question, refer to the Big question How has money transformed into various forms over time?” given in the in-text questions.

Question 5.
What steps might have been taken in ancient times so that Indian coins could become the medium of exchange across countries?
Answer:
In ancient times, several steps were taken to make Indian coins a medium of exchange in across countries, such as-

1. The use of precious metals-The coins were made from precious metals like gold and silver which ensured their inherent value and acceptance.
2. Royal symbols and emblems-Rulers imprint their picture, royal symbols, and emblems on their coins, which indicated that the coin was authentic and authorized by the state.
3. Assurance of quality and purity-To ensure the quality and purity of the coins, the rulers ensured that they were made from high- quality metals and followed purification processes.
4. Standardisation and Weight-A standardised weight system for coins was established (e.g.. 32 rattis or approximately 56 grains), which brought uniformity to trade.
5. Trade routes and networks-Indian merchants and empires established a network for trade with distant countries, which facilitated die easy circulation of Indian coins in various regions.
6. Different types of coins – Coins of various denominations were issued, facilitating different types of transactions.
7. Administration and control-The administration took steps to prevent counterfeiting of coins and to control the monetary system.

Question 6.
Read the following lines from the Arthashastra. “An annual salary of 60 panas could be substituted by an adhaka of grain per day, enough for four meals…” (One adhaka is equal to about 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. What conclusion can you draw about the human values being encouraged?
Answer:
This states that one panoa is equivalent to the value of 50 grams of grain. A fine of 100 panas means 5 kilograms of grain, which is 40 panas (i.e., 2 kilograms of grain) more than a year’s salary. From this, we can conclude something about human values: that the value of human labour was considered negligible, and that helping one’s neighbour was considered paramount. This assistance was considered far more important than the value of one’s annual salary.

Question 7.
Write and enact a skit to show how people may have persuaded each other to use cowrie shells (or other such items) as the medium of exchange.
Answer:
Students should complete this task themselves with the help of their class teacher and other classmates.

Question 8.
The RBI is the only legal source that prints and distributes paper currency in India. To prevent illegal printing of notes and their misuse, the RBI has introduced many security features. Find out what some of these measures are and discuss them in class.
Answer:
The Reserve Bank of India incorporates several security features in banknotes to prevent counterfeiting, illegal printing, and misuse, such as security threads, hidden designs, watermarks, holographic technology, and measures for identifying and preventing counterfeit notes.

For example-

1. Security Thread-A special silver thread runs through the note, that can be read with the help of machines. It is also visible when tilted.
2. Hidden Designs-Some security features are incorporated during the printing process so that they appear in a different color when photocopied.
3. Watermarks-These are embedded in the texture of the notes and also help in preventing counterfeiting.
4. Holographic Technology-This technology makes the notes more secure and prevents counterfeiting.
5. Identification and Prevention of Counterfeit Notes-The RBI incorporates several security measures in the notes to identify counterfeit currency. Violating these measures is a punishable offence. (Note: Students should discuss these safety measures in their class.)

Question 9.
Interview a few of your family members and local shopkeepers, and ask them their preferences in making and receiving payments-do they prefer cash or UPI? Why?
Answer:
Students should find the answer by interviewing their family members and local shopkeepers.