SharnbasveshwarVidyavardhak Sangha’s

THE APPA PUBLIC SCHOOL

SENIOR SECONDARY, AFFILIATED TO CBSE, AFF. NO.
830397

WORK SHEET

CLASS – VII SOCIAL STUDIES

From Barter To Money
Answer key

I. Tick the correct answer

1. What is the barter system?
(a) Using money for trade
(b) Trading goods/services without using money
(c) Saving money in banks
(d) Exchanging coins only
2. Which of the following is a limitation of the barter system?
(a) Use of digital currency
(b) Paper money
(c) Double coincidence of wants
(d) Fast transactions
3. Which material was used as money on Yap Island?
(a) Salt
(b) Cowrie shells
(c) Rai stones (stone discs)
(d) Tea bricks
4. What problem does the term ‘portability’ refer to in the barter system?
(a) Carrying items for trade
(b) Deciding quality
(c) Measuring length
(d) Writing receipts
5. What was a key reason for the development of money?
(a) To pay taxes
(b) To reduce travel
(c) To overcome limitations of barter like divisibi
divisibility and durability
(d) To store clothes
6. Which tribal event in Assam continues the barter tradition today?
(a) Hornbill Festival
(b) Junbeel Mela
(c) Rath Yatra
(d) Pushkar Fair
7. What does ‘divisibility’ refer to in the context of money?
(a) Ability to divide people
(b) Ability to break goods into smaller units
 (c) Counting errors
(d) Voting
8. Which of the following coins featured a Varaha (boar) design?
(a) Gupta coins
(b) Mauryan coins
(c) Chalukya coins
(d) Roman coins
9. What is meant by the term ‘minting’ in relation to money?
(a) Trading in the market
(b) Designing notes
(c) Producing coins
(d) Selling gold
10. Who is responsible for issuing paper money in India today?
(a) President of India
(b) Ministry of Finance
(c) Reserve Bank of India (RBI)
(d) State Governments
11. What is a bank’s role in modern monetary systems?
(a) Only selling goods
(b) Providing security guards
(c) Accepting deposits and giving loans
(d) Building homes
12. Which type of money has no physical form?
(a) Metal coins
(b) Barter goods
(c) Digital money
(d) Paper currency
13. What innovation allows instant online payments in India?
(a) Coin machine
(b) IMPS and UPI systems
(c) Credit cards only
(d) Bank cheques
14. What does the term ‘legal tender’ mean?
(a) Tender for crops
(b) Money backed by military
(c) Money officially accepted by government
(d) Personal credit
15. What is RBI’s role in inflation control?
(a) Setting school syllabus
(b) Regulating currency printing and interest rates
(c) Conducting elections
(d) Issuing licenses
16. What is one benefit of digital payments?
(a) Encourages cash hoarding
(b) Reduces financial transparency
 (c) Enables fast, recorded, and contactless transactions
(d) Eliminates all frauds
17. What role do mobile wallets play in finance?
(a) Store hard cash
(b) Print currency
(c) Facilitate cashless payments via apps
(d) Track gold
18. Which ancient Indian text discusses trade and currency?
(a) Meghaduta
(b) Rigveda
(c) Arthashastra
(d) Manusmriti
19. Which of the following is an example of a barter exchange?
(a) Buying a book with money
(b) Exchanging a pencil for an eraser
(c) Paying school fees through net banking
(d) Using a debit card at a shop
20. What is the problem called when two people want what the other has?
(a) Portability
(b) Divisibility
(c) Durability
(d) Double coincidence of wants
21. A key difficulty in barter is
(a) money shortage
(b) difficulty in transport
(c) lack of a common standard of value
(d) no use of digital payments
22. Why was money invented?
(a) To avoid storage
(b) To make barter more efficient
(c) To solve problems in barter exchange
(d) To increase digital payments

23. The modern ‘₹’ symbol includes elements from

(a) Devanagari and Urdu
(b) Roman and Arabic
(c) Devanagari and Roman
(d) Tamil and English
24. Identify one of the first countries to use paper currency.
(a) India
(b) China
(c) Egypt
(d) Japan
25. What does digital money not require?
(a) Bank account
 (b) Internet
(c) Coins
(d) QR Code

II. Fill in the blanks.

1. The ‘₹’ symbol includes the Devanagari _____________ and the Roman _____________
Answer: Ra, R
2. _____________ are used in digital transactions.
Answer: QR Codes
3. The Chalukyas had the image of _____________, an avatar of Vishnu, on their coins.
Answer: Varaha
4. The Junbeel Mela, where barter is still practiced, begins with an _____________, a
traditional fire worship ceremony.
Answer: Agni Puja
5. In ancient India, coins made from alloys of silver and copper were called _____________
or _____________ panas.
Answer: Karshapanas
6. The difficulty in storing goods like wheat, which could rot or be eaten by rats, led to the
need for a more durable _____________
Answer: store of value
7. The modem Indian currency notes feature motifs that reflect the country’s
_____________ heritage.
Answer: cultural

III. Very Short Answer Type Questions

1. List two commodities used in early barter.
Answer: cowrie shells, salt, tea, tobacco, Transaction: cloth, cattle (cows, goats, horses,
sheep), seeds, etc.
2. Name one digital payment method.
Answer: UPI payment, QR code Scanning, credit card, debit card.
3. What were the motifs present on ancient Indian coins?
Answer:These included nature motifs like animals, trees and hills, and those of kings or
queens, and deities.
4. Ancient coins were made of which material?
Answer:The coins were made from precious metals like gold, silver, and copper or their
alloys.
5. What is the ₹ (rupee) symbol and who designed it?
Answer: The ₹ sign was adopted by the Government of India in 2010. It was designed by
Udaya Kumar from the Indian Institute of Technology, Bombay (Mumbai).
6. What kinds of items are bartered at Junbeel Mela?
Answer: Roots, vegetables, fruit, herbs, and spices, handmade goods and artifacts, made
from natural materials sourced from the forests of the hilly region.

IV. Short and Long Answers

1. What is barter system?
Answer: People exchanged goods or services for other goods and services. This system is
called the barter system.The barter system was the earliest form of exchange. There is a lot
of evidence of it from around the world. People used commodities such as cowrie shells,
salt, tea, tobacco, cloth, cattle (cows, goats, horses, sheep), seeds, etc.

2. What are the limitations of barter system?

Answer: a. Lack of double coincidence of wants.
b. Difficulty in dividing large goods (ox).
c. No common measure of value.
d. Need for multiple exchanges.
e. Transportation challenges.
f. Storage issues for leftover goods.
g. Perishability of traded items

3. What are the basic functions of money?

Answer:
a. A common medium of exchange would make trade easier and more people began to
use it for transactions,it became the accepted method of payment.
b. Money acts as a Store of Value that can be used later.
c. Money serves as a Common denomination that measures the value of goods and
services, and enables the comparison of goods and services in terms of their prices.
d. Money is accepted as a way of making deferred payments makes money a Standard of
deferred payment.
4. What were the salient features of ancient Indian coins?
Answer: a. Coins were made of metals like silver, copper, and gold.
b. Often had symbols, inscriptions, or images of rulers.
c. They were issued by kingdoms and used across regions.
d. Helped standardize trade and were more durable than barter items.
5. What are the security features introduced by RBI to prevent illegal printing of notes?
Answer: a. The Reserve Bank of India (RBI) is the only legal authority responsible for printing
and distributing paper currency in India.
b.To prevent the illegal printing of notes and their misuse, the RBI has introduced several
important security features.
c. These include watermarks, security threads, micro-lettering, color-shifting ink, and raised
printing that helps visually impaired individuals identify notes.
 d.Additionally, features like the see-through register and latent images make it easier to
verify the authenticity of currency

6. What are new forms of money?

Answer: As time has progressed and technology has advanced, other forms of money have
come to be used today.
a. Tangible forms of money such as coins and paper notes.
b. Intangible forms of money that we cannot touch and feel. This is called digital money
which is in electronic form.
c. Different payment methods like debit cards, credit cards, net banking, UPI (Unified
Payments Interface), etc., are also used for transactions.
d. These mediums directly transfer money from one person’s bank account into another.