(i) People in early civilization w ere too busy worrying about _________ .
(a) survival
(b) savings
(c) education
Correct Answer is Options (a)
(ii) Specialization means people become ________ .
(a) hard working
(b) more skilled
(c) more intelligent
Correct Answer is Options (b)
(iii) In our early history, the degree o f division of labour was _______________ .
(a) plenty
(b) limited
(c) not found
Correct Answer is Options (b)
(iv) __________________ is one of the difficulties in using commodities as money.
(a) Hard to carry
(b) Measuring
(c) Conversion
Correct Answer is Options (a)
(v) Metal objects in different forms and shapes were introduced as money many years ago probably around __________ .
(a) 2000 BC
(b) 4000 BC
(c) 5000 BC
Correct Answer is Options (c)
(i) ______ is anything that is commonly accepted by a group of people for the exchange of goods, services, or resources.
(ii) Money is used as the ______ between the buyer and the seller for the goods purchased.
(iii) Red Indians were able to provide ______ for trade with the Europeans.
(iv) Money is also called as ______.
(v) The currency used in Germany is called ______.
(i) Money
(ii) Medium of exchange
(iii) Furs
(iv) Medium of exchange
(v) Euro
(i) Specialisation - paise
(ii) Red Indians - surplus beyond the personal need
(iii) Commodity money - good at hunting
(iv) Fractional Rupees - division of labour
(v) Trade - a basic item used by everyone in the past
(i) Specialisation - division of labour
(ii) Red Indians - good at hunting
(iii) Commodity money - a basic item used by everyone in the past
(iv) Fractional Rupees - paise
(v) Trade - surplus beyond the personal need
(i) As long as the output of the economy is made up of relatively few goods and services, the barter system can function successfully.
(ii) In the past, salt, tea, tobacco, cattle and seeds were once used as money.
(iii) Since coins were given a certain value, it became difficult to compare the cost of items people wanted.
(iv) In modern societies today, coins and paper money are the most commonly used forms of money.
(v) Metal coins cannot be recycled.
(i) True
(ii) True
(iii) False
(iv) True
(v) False
Ans: Trade involves the exchange of goods and services between individuals or entities. In early civilizations, people engaged in barter systems, trading surplus goods to obtain needed items. As societies evolved, the introduction of money simplified trade by providing a standardized medium of exchange, facilitating easier and more efficient transactions.
(ii) Describe briefly the division of labour.
Ans: Division of labour refers to the specialization of individuals in specific tasks or roles within an economy. This specialization increases efficiency and productivity as people become more skilled in their particular tasks. Historically, this led to the development of various trades and professions, enhancing overall economic growth and societal development.
(iii) What is commodity money?
Ans: Commodity money refers to the use of physical goods, such as salt, tea, tobacco, or metals, as a medium of exchange. These commodities have intrinsic value and were widely accepted in trade before the advent of modern currency systems. They facilitated trade by providing a tangible and universally recognized medium of exchange.
(iv) Describe briefly about money used in India.
Ans: The primary currency used in India is the Indian Rupee (INR). Coins and paper money are common forms of currency, with denominations ranging from small coins like paise to larger notes in rupees. The Indian Rupee is the medium of exchange for goods and services in the economy, facilitating trade and economic transactions efficiently.
(i) Explain bartering and commodity money.
Ans: Bartering is the direct exchange of goods and services without using money. In a barter system, individuals trade items that they have in surplus for items they need. This system requires a double coincidence of wants, meaning both parties must want what the other offers.
Commodity money refers to using physical goods that have intrinsic value as a medium of exchange. Examples include salt, tea, tobacco, and precious metals. These commodities were widely accepted in trade because of their inherent value and utility. Over time, as economies grew more complex, commodity money evolved into standardized forms of currency, leading to the development of metal coins and eventually paper money. This evolution simplified trade, enabling more efficient economic transactions.
26 videos|33 docs
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1. How do barter systems differ from money-exchange systems? |
2. What are the advantages of using money-exchange systems over barter systems? |
3. What are the different types of money-exchange systems in use today? |
4. How does the concept of inflation affect money-exchange systems? |
5. How do governments regulate money-exchange systems to ensure stability and prevent fraud? |
26 videos|33 docs
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