Understanding Barter and Currency

What was the earliest form of exchange among people?

• Coins

• Barter system

• Notes

• Digital money

What was a major problem in the barter system?

• People didn’t know what they wanted

• Double coincidence of wants

• Too much money

• Everything was available

Which of the following is NOT a commodity used in barter exchange?

• Salt

• Cowrie shells

• Cloth

• Credit cards

What does the term ‘portability’ refer to?

• Ability to sell anything

• Ability to divide goods

• Ability to carry goods from one place to another

• Ability to trade with everyone

Why was the ox not an ideal item to trade?

• It was too valuable

• It was not useful

• It could not be divided or stored easily

• It wasn’t accepted

What quality of money helps store it for future use?

• Portability

• Durability

• Divisibility

• Coinage

Which tribal fair in Assam still uses bartering?

• Kaziranga Fair

• Junbeel Mela

• Brahmaputra Festival

• Hornbill Festival

Which of these is a modern example of barter?

• Using ATM

• Exchanging old clothes for utensils

• Credit card use

• Digital wallet payments

What is a basic function of money?

• Grows interest

• Medium of exchange

• Helps in agriculture

• Protects currency

What problem arises without a common standard measure of value?

• You get more items

• Difficult to compare goods

• Easy to barter

• Money loses value