NCERT Solutions for Class 7 social science Chapter 11: From Barter to Money Class 7

How did exchange take place before money?
Answer:
Before money came into existence, exchange took place through the barter system. In this system, people directly exchanged goods and services for other goods and services. For example, a farmer might exchange wheat for clothes with a weaver. However, this system required a double coincidence of wants, meaning both parties had to need what the other offered at the same time.

Why did money come into existence?
Answer:
Money came into existence to overcome the limitations of the barter system, such as the difficulty of finding someone who wanted what you had and had what you wanted. Money made trade more convenient, efficient, and fair, as it acted as a medium of exchange, a store of value, a unit of account, and a standard of deferred payment.

How has money transformed into various forms over time?
Answer:
Money has evolved significantly over time. It started with the use of commodities like grains or cattle, then moved to metallic money such as gold and silver coins. Later, people began using paper currency issued by governments. In modem times, money has taken digital forms like debit/credit cards, mobile wallets, UPI, and cryptocurrencies, making transactions faster and more secure.

Imagine that you are a farmer and that people use a barter system where you live. You need a whole variety of things-a pair of new shoes, a sweater, and medicines for your grandmother. But you only have an ox that you can spare. How would you be able to exchange the ox for all the different things you need from different people or places? What difficulties are you likely to face? (Page 231-232)

The illustrations given below show you some of the ways in which people practise barter today. Have you observed similar practices in your locality? What are the types of experiences people have in this process? (Page 236)

Answer:
Yes, similar barter practices can still be seen in many localities even today.
(i) Exchange of old clothes for utensils: In many neighborhoods, vendors visit homes and offer utensils or household goods in return for old clothes or fabrics. People find this useful as it allows them to clear unused items and get something of value in return.

Look at the timeline given below. What are the changes in money that you observe? (Page 238)

Answer:
The timeline shows the evolution of money in India and highlights key changes over time:

The coins shown in the given figure 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:
From the discovery of Roman gold coins in Pudukkottai, Tamil Nadu, we can draw the following conclusions:

Organise yourselves into groups of five students each. Take up a group project to collect old coins from family members, neighbours, shopkeepers, and so on. Document their various features what are they made of, what is the year inscribed on the coins, what do you observe on the obverse and reverse sides of the coins. What can you guess from your observations? How would you know if your guesses are true? (Page 241)
Answer:
Do it yourself.

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? (Page 241)
Answer:
As coins began to be used for all types of exchanges big and small several things likely happened:
What likely happened:

Look at a 50 and a 100-rupee note. Can you identify the motifs depicting India’s cultural heritage on the reverse side of the notes? Find out more about them. Feel the surface of the notes. What special features of currency notes help visually impaired persons to identify the notes’ denominations? (Page 242) Ans. Do it yourself. (Page 242)

What are the different types of difficulties you encountered in the situation given on page 129? (Page 232)
Answer:
In the barter system described, the following difficulties were encountered:

What are the instances of double coincidence of wants in the above example? Even if there are two people who want each other’s goods and are also willing to make an exchange, other issues could arise—in what proportion should the two goods be exchanged? In such cases, it becomes difficult to compare the value of one good against another. If one of the people feels that the exchange is disadvantageous, they would not be interested in the exchange. This is because there is no common standard measure of value.
In the situation given above, what are the cases where you could encounter the lack of a common standard measure of value? (Page 233)
Answer:
(a) Instances of double coincidence of wants: A double coincidence of wants occurs when two people each have something the other wants and are willing to trade. In the given example, such an instance would be:

What are the different ways in which money would make the above situation easier for the farmer? (Page 234)
Answer:

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? (Page 237)
Answer:
Do it yourself.