NCERT Questions and Activities (with Answers)
Q1. How does the barter system take place and what kinds of commodities were used for exchange under the system?
Answer:
In the barter system, goods and services were directly exchanged without money. For example, one person gave wheat in exchange for clothes or tools. Commodities used included cowrie shells, salt, tea, tobacco, cloth, cattle, seeds, and even feathers or stones in different regions.
Q2. What were the limitations of the barter system?
Answer:
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Double coincidence of wants – both people needed to want what the other offered.
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Lack of common value – it was difficult to decide how much of one item equaled another.
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Divisibility – some goods could not be divided (e.g., an ox).
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Portability – carrying bulky goods was hard.
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Durability – items like wheat could spoil.
Q3. What were the salient features of ancient Indian coins?
Answer:
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Made of precious metals like gold, silver, and copper.
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Known as kārṣhāpaṇas or paṇas, with symbols called rūpas punched on them.
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Coins had different motifs like animals, trees, kings, and gods.
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Some coins were accepted across kingdoms, helping trade.
Q4. How has money as a medium of exchange transformed over time?
Answer:
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Barter system → cowries, salt, shells.
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Metal coins (gold, silver, copper).
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Paper currency in the 18th century.
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Modern times: digital money like debit/credit cards, UPI, and QR codes.
Q5. What steps might have been taken in ancient times so that Indian coins could become the medium of exchange across countries?
Answer:
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High-quality metal coins to build trust.
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Common symbols and weights.
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Strong trade links with other regions.
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Powerful rulers ensuring coins’ acceptance across kingdoms.
Q6. Read the following lines from the Arthaśhāstra.
“An annual salary of 60 paṇas could be substituted by an āḍhaka of grain per day, enough for four meals…”
The fine for failing to help a neighbour was 100 paṇas. Compare this with the annual salary. What conclusion can you draw about the human values being encouraged through this?
Answer:
The fine of 100 paṇas was more than a yearly salary, which shows how strongly society valued helping others. It encouraged social responsibility, kindness, and cooperation among people.
Q7. Write and enact a skit to show how people may have persuaded each other to use cowrie shells (or other such items) as the medium of exchange.
Answer (Sample Skit Idea):
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Person A: “Carrying wheat is too heavy. It rots quickly.”
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Person B: “But cowrie shells are light, durable, and everyone accepts them.”
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Person C: “Yes, let’s agree to use cowrie shells as a fair medium of exchange.”
(Classroom activity to be enacted.)
Q8. The RBI is the only legal source that prints and distributes paper currency in India. To prevent illegal printing of notes and their misuse, the RBI has introduced many security features. Find out what some of these measures are and discuss them in class.
Answer:
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Watermarks of Mahatma Gandhi.
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Security thread.
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Micro lettering.
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See-through register.
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Colour-changing ink.
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Raised printing for the visually impaired.
Q9. Interview a few of your family members and local shopkeepers, and ask them their preferences in making and receiving payments — do they prefer cash or UPI? Why?
Answer (Sample):
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Family members: prefer UPI for convenience and safety.
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Shopkeepers: some prefer cash because it’s immediate, others prefer UPI because it avoids handling change.
Both agree that digital payments are faster and safer in today’s times.
Extra Short Answer Questions (2–3 sentences)
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What is meant by double coincidence of wants?
→ It is when two people each have what the other wants and are willing to exchange directly. -
What is divisibility in money?
→ Money can be divided into smaller units (₹100 = two ₹50 notes), unlike an ox or wheat in barter. -
What does portability mean in money?
→ Money is easy to carry, unlike bulky goods like wheat or cattle. -
Name two unique items used as money in history.
→ Rai stones of Micronesia and red feather coils (Tevau) of Solomon Islands. -
Who controls the issue of currency in India?
→ The Reserve Bank of India (RBI). -
What is digital money?
→ Money in electronic form, used through UPI, debit/credit cards, and net banking. -
What was Junbeel Mela?
→ A barter fair in Assam where tribes exchanged goods without money. -
Why did paper money become necessary?
→ Because carrying large numbers of coins was heavy and inconvenient. -
What does “store of value” mean in money?
→ Money can be saved and used later without losing value. -
What does the ₹ symbol represent?
→ A blend of Devanagari “Ra” and Roman “R”, with two stripes for the tricolour and equality.
Extra Long Answer Questions (5–6 sentences)
Q1. Explain the limitations of the barter system with examples.
→ In barter, people had to find someone who wanted exactly what they offered (double coincidence of wants). It was hard to decide how much one good was worth compared to another. Goods like oxen couldn’t be divided, making fair exchange difficult. Carrying bulky items like wheat was inconvenient. Perishable goods spoiled over time, making storage a problem. These limitations made money necessary.
Q2. Describe the evolution of money in India.
→ Exchange began with barter and commodities like shells and cattle. Later, metal coins of gold, silver, and copper were used, issued by rulers. Paper money was introduced in India in the late 18th century. In modern times, electronic forms like debit/credit cards, UPI, and QR codes are common. This journey shows how money keeps evolving with human needs and technology.
Q3. Why is money considered better than barter?
→ Money is a common medium of exchange accepted by all. It solves the problem of double coincidence of wants. It can be divided, carried easily, and stored for long periods. It provides a common measure of value for comparing goods and services. It also allows deferred payments, making transactions more flexible.