CBSE Class 7 Social Science Question 6 of 6

From Barter to Money — Question 6

Back to all questions
6
Question
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: Trade became easier: People no longer needed to match goods exactly as in barter. Standard value emerged: Prices could be fixed for goods and services. Markets expanded: More people could trade, even with strangers. Possible problems: Fake coins: Counterfeiting could have increased. Storage and safety: People needed safe places to keep coins. Weight issues: Carrying large amounts of coins for big purchases (like land) would be heavy and risky. Value fluctuations: Metal coins’ value could change with the metal’s market value. Unequal access: Not everyone may have had enough coins, leading to economic inequalities. Coins made trade smoother but also brought challenges like security, counterfeiting, and inequality.