From Barter to Money Class 7 MCQ
hardFrom Barter to Money Class 7 MCQ
From Barter to Money Class 7 MCQ
Question 1.
What was the primary limitation of the barter system?
(a) It required a large variety of goods.
(b) It depended on a double coincidence of wants.
(c) It was universally accepted.
(d) It allowed for easy storage of goods.
Answer:
(b) It depended on a double coincidence of wants.
Question 2.
Which of the following was NOT a form of money used in ancient times?
(a) Cowrie shells
(b) Precious metals
(c) Paper currency
(d) Barley
Answer:
(c) Paper currency
Question 3.
How does money serve as a 'store of value'?
(a) It can be exchanged for goods and services immediately.
(b) It allows for deferred payments and can be saved for future use.
(c) It is accepted universally without question.
(d) It has intrinsic value in itself.
Answer:
(b) It allows for deferred payments and can be saved for future use.
Question 4.
What was one significant impact of the introduction of coinage in ancient India?
(a) It eliminated the need for trade.
(b) It simplified maritime trade with other countries.
(c) It increased the reliance on barter.
(d) It made goods more expensive.
Answer:
(b) It simplified maritime trade with other countries.
Question 5.
In the context of the Arthashastra, what can be inferred about the value of one pana compared to an adhaka of grain?
(a) One pana is worth significantly more than an adhaka of grain.
(b) One pana is equivalent to the value of one meal.
(c) One pana is a small fraction of the value of an adhaka of grain.
(d) The value of one pana is irrelevant to the economy.
Answer:
(c) One pana is a small fraction of the value of an adhaka of grain.
Case Study
The limitations of the barter system led to the development of money as a medium of exchange. The barter system required a double coincidence of wants, meaning that both parties needed to want what the other had to offer. This often made trade difficult and inefficient, prompting societies to seek a more effective means of exchange.
Question 1.
The barter system allowed for easy and efficient trade between individuals. (True/False)
Answer:
False
Question 2.
The requirement of a double coincidence of wants in the barter system made trade .............
Answer:
difficult
Question 3.
What prompted societies to develop money as a medium of exchange?
(a) The abundance of goods
(b) The limitations of the barter system
(c) The desire for luxury items
(d) The increase in population
Answer:
(b) The limitations of the barter system
Question 4.
Which of the following is a characteristic of the barter system?
(a) It uses a common standard of value
(b) It requires both parties to have what the other wants
(c) It is a modern form of trade
(d) It is efficient and quick
Answer:
(b) It requires both parties to have what the other wants
Question 5.
The development of money was a response to the ............ of the barter system.
Answer:
limitations