NCERT Solutions for Class 7 Social Science Chapter 11 From Barter To Money

NCERT Solutions Class 7 Social Science Chapter 11 are given here to help students clearly understand the chapter From Barter To Money.

This chapter explains the evolution of exchange systems from simple barter to the use of money. This way students can understand the chapter clearly, improve answer-writing skills, and prepare effectively for Class 7 academic exams.

From Barter To Money in Class 7 Chapter Summary

From Barter To Money Class 7 is a chapter that explains how early human societies exchanged goods and services and how money gradually became the most convenient medium of exchange.

Initially, people followed the barter system, where goods were directly exchanged for other goods. However, this system had several limitations, such as the lack of a common measure of value and the problem of finding someone with matching needs.

The chapter further explains how these challenges led to the introduction of money, first in the form of commodities and later as coins and currency. 

Class 7 From Barter To Money Question Answers

NCERT Solutions From Barter To Money Question Answers are given here.

The answers are written strictly as per the NCERT textbook and follow a simple language format suitable for school exams:

The Big Questions? (Page 229)

How did exchange take place before money?

Answer: Before the invention of money, people used the barter system to exchange goods and services. This involved trading one product or service directly for another. For instance, a farmer could trade wheat with a weaver in return for clothes. However, this method depended on a double coincidence of wants, meaning both individuals needed each other’s goods at the same time.

Why did money come into existence?

Answer: Money was introduced to solve the problems of the barter system, especially the challenge of finding a person who both wanted your goods and could offer what you needed. Money simplified trade by making it easier, faster, and more reliable. It served as a medium of exchange, a way to store value, a unit to measure worth, and a means for making future payments.

How has money transformed into various forms over time?

Answer: Over time, money has changed in many ways. Initially, items like grains and cattle were used as money. Later, metallic coins made from gold and silver became common. This was followed by paper currency issued by governments. In modern times, money exists in digital forms such as debit and credit cards, mobile wallets, UPI, and cryptocurrencies, allowing quicker and safer transactions.

Let’s Explore

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)

For one, you would have to find someone who needed an ox. Now, swapping your ox for 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 a pair of shoes would hardly be a fair exchange! You may have had to go through a series of exchanges—for example, find someone to exchange your ox for several bags of wheat. You would then have to transport all that wheat to several places; first, find someone willing to exchange a part of the wheat for shoes, another person for the sweater, and yet another for the medicines. In each of these cases, a discussion would take place to arrive at the fair amount of wheat that you could exchange for shoes or for the sweater.

You would have to take the leftover bags of wheat and find a place to store them safely. The next time you needed something, you would have to carry the bags of wheat with you again!

Answer: Do it yourself.

(i) What are the different types of difficulties you encountered in the situation given on page 129?

Answer: The barter system involved several problems, such as:

• Absence of double coincidence of wants.

• Difficulty in dividing bulky items like an ox.

• No common way to measure value.

• Requirement of many exchanges to get desired goods.

• Problems related to transporting goods.

• Storage issues for leftover items.

• Spoilage of perishable goods.

(ii) What are the instances of double coincidence of wants in the example?  What situations show the lack of a common standard measure of value?

Answer: (a) Instances of double coincidence of wants:
Double coincidence of wants happens when two individuals want each other’s goods and are ready to exchange them. In the given situation, this occurs when:

• One person wants the other’s product and is willing to trade their own, and

• The second person also wants the first person’s product and agrees to exchange.

(b) Lack of a common standard measure of value:

• When both people agree to exchange goods but cannot decide the correct quantity to trade. 

• If one person feels they are giving more value than they are receiving, the exchange may fail.

• Since there is no fixed measure like money, comparing the value of different goods becomes difficult, leading to conflicts.

(iii) What are the different ways in which money would make the above situation easier for the farmer?

Answer:

• No need for matching wants: The farmer can sell the ox for money and then buy shoes, clothes, and medicines separately.

• Fixed value: Money provides a clear way to compare prices.

• Fewer transactions: Only one sale is needed instead of many exchanges.

• Easy to carry: Money is light and portable compared to goods like wheat.

• No storage problems: Money does not spoil or need special storage.

• Easy dealings: Buying and selling becomes straightforward because prices are already decided

2.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, forms of barter are still found in many places even today.
(i) Exchange of old clothes for utensils: In several local areas, vendors go door to door offering utensils or household items in exchange for old clothes or fabric. This practice is helpful because people can get rid of unused items while receiving something useful in return.

(ii) Book exchange in schools or communities:
In many schools, libraries, and community groups, students exchange books with each other. This helps children enjoy new books without purchasing them and promotes reading, cooperation, and sharing among peers.

(iii) Barter at fairs or local events:
Although not widespread today, barter systems can still be seen at traditional fairs such as the Junbeel Mela in Assam. At these events, people trade local produce, handcrafted items, and forest goods for food or other products. Such fairs preserve cultural traditions and offer a lively community experience.

Overall, practices like exchanging old clothes for utensils are still common in many areas, and book exchange clubs are frequently found in schools and libraries.

Experiences people have with barter systems:

(i) Positive experiences:

• Encourages sharing and strengthens community relationships.

• Reduces waste and promotes the reuse of goods.

• Helps people obtain useful items without spending money.

(ii) Challenges:

• Disagreements may arise over the value of exchanged items.

• Finding someone with matching needs can be time-consuming.

• The quality or condition of items exchanged may not always be equal or satisfactory.

Question: Suppose you need to buy a book. You have Rs. 50 in your pocket. You visit the bookshop in your neighbourhood where the shopkeeper tells you that the book is worth Rs. 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?

Answer: Do it yourself

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

Answer: The timeline illustrates how money developed in India and marks important stages in its evolution:

• 6000 BCE – Barter System: Direct exchange of goods and services without money.

• 1000 BCE – Cowrie Shells: Used as one of the earliest mediums of exchange.

• 600 BCE – Metal Coins: Coins made from iron, silver, gold, and copper came into use.

• 1861 – Paper Currency: Paper money was officially introduced during British rule.

• 1980 – Digital Payments (Cards): Debit and credit cards enabled cashless transactions.

• 2016 – UPI: Unified Payments Interface allowed quick bank transfers through mobile phones.
  
  

4.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: The discovery of Roman gold coins in Pudukkottai, Tamil Nadu, leads to the following conclusions:

• Strong Trade Relations with Rome: Southern India had active sea trade connections with the Roman Empire.

• Favorable Trade for India: The presence of Roman coins indicates that Romans purchased more goods from India.

• High Value of Indian Products: Goods such as spices, textiles, and pearls were in great demand abroad.

• Cultural and Economic Interaction: This reflects early globalization, involving the exchange of goods, currency, and possibly ideas as well.

5.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.

6.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 started being used for both small and large transactions, several changes likely took place.

What probably happened:

• Trade became simpler: People no longer had to rely on exact matching of needs as in the barter system.

• Standard value was set: Goods and services could be priced uniformly.

• Expansion of markets: Trade increased and people could buy and sell even with unknown traders.

Possible problems that arose:

• Counterfeit coins: The use of fake coins may have increased.

• Safety concerns: People needed secure places to store their coins.

• Difficulty in carrying coins: Large purchases required carrying heavy amounts of coins, which was inconvenient and unsafe.

• Fluctuation in value: The worth of metal coins could change depending on metal prices.

• Unequal availability: Some people may not have had enough coins, leading to economic inequality.

Overall, while coins made trade easier, they also introduced issues like security risks, counterfeiting, and unequal access.

7.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) 

Answer. Do it yourself. 

Questions and activities (Page 244)

1. How does the barter system take place and what kinds of commodities were used for exchange under the system?

Ans: The barter system happens when people exchange goods or services directly without using money. Items such as food grains, handmade goods, beads, stones, fruits, vegetables, and other useful things were commonly used for exchange.

2. What were the limitations of the barter system?

Ans:

• There was no fixed way to decide the value of goods

• It was hard to find someone who wanted exactly what the other person had

• Goods were often difficult to carry from place to place

• Many goods could not be divided easily

• Some items spoiled or did not last long

3. What were the salient features of ancient Indian coins?

Ans:

• They were made using metals like gold, silver, and copper

• They were called kārṣhāpaṇas or paṇas

• Coins were produced by a method known as minting

• They had punched marks called rūpas

• Different designs and symbols were shown on the coins

4. How has money as a medium of exchange transformed over time?

Ans: Money has changed over time from the barter system to shells, metal coins, paper money, and now digital methods like cards and UPI. These changes have made buying and selling easier, faster, and safer.

5. What steps might have been taken in ancient times so that Indian coins could become the medium of exchange across countries?

Ans:

• Trade routes were developed through sea travel

• Coins were made with fixed weight, size, and metal for uniformity

• Special symbols and kings’ marks were used to prove originality

• Trade with other countries helped spread the use of coins

• Traders accepted the coins in different markets

• Coins were made from precious metals to build trust

• Governments supervised coin-making to maintain quality

6. 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...” (One āḍhaka is equal to about 3 kg) What does this indicate about the value of one pana?

The fine for failing to help a neighbour was 100 panas. Compare this with the annual salary. What conclusion can you draw about the human values being encouraged through this?

Ans: The first statement shows that one paṇa was very valuable because 60 paṇas could support a person with enough grain for food for an entire year. This proves that even a few paṇas had strong buying power.
The second statement says that the fine for not helping a neighbour was 100 paṇas, which is more than the yearly salary. This shows that helping others and caring for society were very important values. The rules encouraged kindness, cooperation, and responsibility towards others.

7. Write and enact a skit to show how people may have persuaded each other to use cowrie shells (or other items) as the medium of exchange.

Ans: Person A: “Carrying bags of grain is very tiring. Why don’t we use cowrie shells instead? They are small and easy to carry.”

Person B: “Will other people accept them?”

Person A: “Yes, if we all agree to use them. They don’t spoil and everyone can recognize them. Let’s start using cowrie shells for trading.”

8. 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.

Ans: 

• Watermarks

• Special colour-changing ink

• Security threads inside the note

• See-through matching marks

• Very small printed letters

• Raised marks to help visually impaired people

9. Interview some family members and local shopkeepers: do they prefer cash or UPI? Why?

Ans: Many family members and shopkeepers prefer UPI because it is fast, easy, and safe, and there is no need to carry cash. However, some people still choose cash for small purchases or in places where the internet is not available. The choice depends on convenience and access to technology.