CHAPTER 11: FROM BARTER TO MONEY
1. What is the barter system?
A. Exchanging goods and services without using money
B. Buying goods only with paper currency
C. Transferring money through mobile phones
D. Depositing money in a bank
Answer: A. Exchanging goods and services without using money
2. What was the earliest form of exchange mentioned in the chapter?
A. Digital payment
B. Paper currency
C. Barter system
D. Credit card payment
Answer: C. Barter system
3. Which of the following commodities were used for exchange in traditional barter systems?
A. Cowrie shells, salt, tea, tobacco, cloth and cattle
B. Only paper notes
C. Only gold coins
D. Debit cards and credit cards
Answer: A. Cowrie shells, salt, tea, tobacco, cloth and cattle
4. What is meant by a transaction?
A. A business activity, especially buying or selling
B. A type of agricultural tool
C. A method of growing crops
D. A process of making paper
Answer: A. A business activity, especially buying or selling
5. In the textbook example, what does a student exchange for an extra pencil?
A. An extra eraser
B. A notebook
C. A school bag
D. A ruler
Answer: A. An extra eraser
6. What is the main difficulty of the barter system called “double coincidence of wants”?
A. Both people must want what the other person is offering.
B. Both people must use paper currency.
C. Both people must visit a bank.
D. Both people must exchange identical goods.
Answer: A. Both people must want what the other person is offering.
7. What is a common standard measure of value?
A. An agreed-upon measure used to determine the value of goods and services
B. A tool used only to weigh agricultural produce
C. A method of transporting goods
D. A type of metal used in coins
Answer: A. An agreed-upon measure used to determine the value of goods and services
8. Why is comparing the value of two goods difficult in a barter system?
A. There may be no common standard measure of value.
B. All goods have exactly the same value.
C. Goods cannot be exchanged directly.
D. Every exchange must involve a bank.
Answer: A. There may be no common standard measure of value.
9. What is the problem of divisibility in the barter system?
A. Some goods cannot easily be divided into smaller portions for exchange.
B. Goods cannot be transported between places.
C. Goods lose their value immediately.
D. People cannot store any goods.
Answer: A. Some goods cannot easily be divided into smaller portions for exchange.
10. What does portability mean?
A. The ability to carry or move an object from one place to another
B. The ability to grow crops
C. The ability to compare prices
D. The ability to produce metal
Answer: A. The ability to carry or move an object from one place to another
11. Why can durability be a problem when goods are used as money?
A. Some goods spoil or become damaged during storage.
B. All goods are too light to carry.
C. Goods cannot be exchanged.
D. Goods always increase in value.
Answer: A. Some goods spoil or become damaged during storage.
12. In the farmer’s example, why is wheat not a perfect substitute for money?
A. It may rot or be eaten by rats during storage.
B. It cannot be used for food.
C. It is always more valuable than gold.
D. It cannot be transported anywhere.
Answer: A. It may rot or be eaten by rats during storage.
13. Which of the following is an example of barter that continues today?
A. Exchanging old clothes for new utensils
B. Paying through a credit card
C. Transferring money through UPI
D. Withdrawing cash from an ATM
Answer: A. Exchanging old clothes for new utensils
14. What is Junbeel Mela?
A. An annual socio-cultural fair in Morigaon district of Assam
B. A modern banking conference in Mumbai
C. A coin-manufacturing centre in Delhi
D. A national currency exhibition in Kolkata
Answer: A. An annual socio-cultural fair in Morigaon district of Assam
15. What does “Jun” mean in the Assamese name Junbeel?
A. Moon
B. River
C. Forest
D. Market
Answer: A. Moon
16. What does “Beel” mean in the Assamese name Junbeel?
A. Wetland
B. Mountain
C. Coin
D. Village
Answer: A. Wetland
17. Which communities are mentioned as gathering for Junbeel Mela from the 15th century?
A. Tiwa, Karbi, Khasi and Jaintia
B. Chola, Chera, Pandya and Gupta
C. Maurya, Nanda, Shunga and Kushana
D. Gond, Bhil, Santhal and Toda
Answer: A. Tiwa, Karbi, Khasi and Jaintia
18. What is one purpose of Junbeel Mela?
A. To maintain friendly relationships and exchange local produce
B. To manufacture modern paper currency
C. To conduct national elections
D. To produce gold coins for banks
Answer: A. To maintain friendly relationships and exchange local produce
19. Why did money come into existence?
A. The growing volume and distance of trade created a need for a common medium of exchange.
B. People stopped producing goods.
C. Barter required no effort.
D. All goods became identical in value.
Answer: A. The growing volume and distance of trade created a need for a common medium of exchange.
20. What is the first basic function of money discussed in the chapter?
A. Medium of exchange
B. Weather forecasting
C. Land measurement
D. Crop production
Answer: A. Medium of exchange
21. How does money act as a store of value?
A. It can be kept and used for purchases later.
B. It must be exchanged immediately for food.
C. It always loses its value after one day.
D. It cannot be saved.
Answer: A. It can be kept and used for purchases later.
22. How does money help compare the value of different goods and services?
A. It provides a common denomination through prices.
B. It makes all goods cost the same amount.
C. It eliminates the need to calculate prices.
D. It prevents goods from being sold.
Answer: A. It provides a common denomination through prices.
23. What does the term “standard of deferred payment” mean?
A. Money can be accepted for payments that are made later.
B. Money can only be used for immediate purchases.
C. Goods must always be exchanged directly.
D. Payments can be made only using coins.
Answer: A. Money can be accepted for payments that are made later.
24. Which were among the earliest forms of money mentioned in the chapter’s timeline?
A. Coins
B. Credit cards
C. Digital wallets
D. Paper notes only
Answer: A. Coins
25. Who controlled the minting and issue of coins in ancient kingdoms?
A. Rulers
B. Farmers
C. Travelling merchants alone
D. Village school committees
Answer: A. Rulers
26. What happened when coins issued by powerful rulers became accepted in other kingdoms?
A. Trade across different regions became easier.
B. All trade between kingdoms stopped.
C. Barter became the only permitted method.
D. Coins could no longer be used.
Answer: A. Trade across different regions became easier.
27. Which metals were used to make ancient Indian coins?
A. Gold, silver and copper
B. Plastic, rubber and glass
C. Aluminium and paper
D. Wood and cloth
Answer: A. Gold, silver and copper
28. What is an alloy?
A. A metal made by combining two or more metallic elements
B. A coin made entirely of paper
C. A type of agricultural product
D. A method of exchanging services
Answer: A. A metal made by combining two or more metallic elements
29. What were ancient Indian coins called in the chapter?
A. Kārṣhāpaṇas or paṇas
B. Rupees or dollars only
C. Dinars or euros
D. Pounds or annas only
Answer: A. Kārṣhāpaṇas or paṇas
30. What were the symbols punched on ancient Indian coins called?
A. Rūpas
B. QR codes
C. Denominations
D. Transactions
Answer: A. Rūpas
31. What are the two sides of a coin called?
A. Obverse and reverse
B. Front and denomination
C. Mint and alloy
D. Currency and transaction
Answer: A. Obverse and reverse
32. Which image appeared on coins of the Chalukyas of Kalyana shown in the chapter?
A. Varaha, an avatar of Vishnu
B. A modern national emblem
C. A QR code
D. A railway engine
Answer: A. Varaha, an avatar of Vishnu
33. What image appeared on the silver coin of the Cholas shown in the chapter?
A. A tiger emblem
B. A cowrie shell
C. A peepul leaf
D. A modern bank logo
Answer: A. A tiger emblem
34. What do Roman gold coins excavated in Pudukkottai, Tamil Nadu, suggest?
A. India had trading connections with the Roman world.
B. India had no contact with foreign countries.
C. Roman coins were produced only in modern India.
D. Trade existed only within individual villages.
Answer: A. India had trading connections with the Roman world.
35. According to the chapter, what did Roman coins found in southern India help scholars understand?
A. Maritime trade was important, and the trade was favourable to India.
B. India imported every product and exported nothing.
C. Southern India had no overseas trade.
D. Coins were used only for religious ceremonies.
Answer: A. Maritime trade was important, and the trade was favourable to India.
36. What fraction of a rupee was one anna?
A. One-half
B. One-quarter
C. One-sixteenth
D. One-tenth
Answer: C. One-sixteenth
37. In which year was the Indian rupee symbol adopted by the Government of India?
A. 1947
B. 1950
C. 2010
D. 2016
Answer: C. 2010
38. Who designed the Indian rupee symbol?
A. Udaya Kumar
B. Prem Behari Narain Raizada
C. Nandalal Bose
D. Dr. B. R. Ambedkar
Answer: A. Udaya Kumar
39. Which two letters are combined in the design of the Indian rupee symbol?
A. Devanagari “Ra” and Roman “R”
B. Roman “D” and Devanagari “Da”
C. Roman “P” and Devanagari “Pa”
D. Roman “S” and Devanagari “Sa”
Answer: A. Devanagari “Ra” and Roman “R”
40. Why did paper money become useful as coins became widely used?
A. Carrying and storing large numbers of coins became difficult.
B. Coins could not be made from metal.
C. Paper money was heavier than coins.
D. People stopped buying and selling goods.
Answer: A. Carrying and storing large numbers of coins became difficult.
41. Where was paper money first used, according to the chapter?
A. China
B. India
C. Greece
D. Egypt
Answer: A. China
42. When was paper currency introduced in India, according to the chapter?
A. In the late 18th century
B. In the early 10th century
C. In the 15th century BCE
D. In the late 20th century
Answer: A. In the late 18th century
43. What is currency?
A. A system of money used in a particular country
B. A type of agricultural tool
C. A method of storing grain
D. A system of exchanging only services
Answer: A. A system of money used in a particular country
44. Which institution controls the issue of currency in India?
A. Reserve Bank of India (RBI)
B. Supreme Court of India
C. Election Commission of India
D. Ministry of Education alone
Answer: A. Reserve Bank of India (RBI)
45. What is digital money?
A. Money in electronic form that cannot be touched or felt like physical notes and coins
B. Money made only from gold
C. Money printed on paper
D. Money exchanged only through barter
Answer: A. Money in electronic form that cannot be touched or felt like physical notes and coins
46. What does QR stand for in QR code?
A. Quick Response
B. Quality Register
C. Quantity Record
D. Quick Receipt
Answer: A. Quick Response
47. What happens when a customer scans a seller’s QR code to make a digital payment?
A. The payment can be transferred directly to the seller’s bank account.
B. The customer must exchange agricultural produce.
C. The seller receives physical coins automatically.
D. The payment is stored only on paper.
Answer: A. The payment can be transferred directly to the seller’s bank account.
48. Which of the following is a digital payment method mentioned in the chapter?
A. UPI
B. Cowrie shells
C. Barter
D. Punch-marked coins
Answer: A. UPI
49. What does UPI stand for?
A. Unified Payments Interface
B. Universal Price Indicator
C. United Payment Institution
D. Uniform Purchase Index
Answer: A. Unified Payments Interface
50. Which statement best summarises the evolution of money described in the chapter?
A. Money evolved from barter and commodities to coins, paper currency and digital payments.
B. Money has always existed only as paper notes.
C. Digital payments existed before barter.
D. The use of money has eliminated every form of barter.
Answer: A. Money evolved from barter and commodities to coins, paper currency and digital payments.
