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Barter Honey

Total questions: 10

Worksheet time: 8mins

Name
Class
Date
1.

In a barter system where goods are directly exchanged without the use of money, double coincidence of wants is an essential feature.

a)

True

b)

False

2.

In India, _____________ issues currency notes on behalf of the Central Government.

a)

Reserve Bank of India (RBI)

b)

Ministry of Finance

c)

Finance Commission

d)

None of the above

3.

The difference between what is charged from borrowers and what is paid to depositors is the main source of banks income.

a)

True

b)

False

4.

Which one of the following is a modern form of currency?

a)

Paper notes

b)

Gold

c)

Silver

d)

Copper

5.

Name the system in which the double coincidence of wants is an essential feature.

a)

Money economy

b)

Global economy

c)

Barter system

d)

None of these

6.

Which among these is an essential feature of barter system?

a)

Money can easily exchange any commodity

b)

It is based on double co-incidence of wants

c)

It is generally accepted as a medium of exchange of goods with money

d)

It acts as a measure and store of value

7.

Which one of the following is not a modern form of money?

a)

Demand Deposits

b)

Paper currency

c)

Coins

d)

Precious metals

8.

Money

a)

eliminates double-coincidence of wants

b)

acts as a common measure of value

c)

acts as a standard of deferred payments

d)

all the options

9.

Read the dialogue between the two people:

Sita: I want 1kg of potatoes

Ram: What will you give me in exchange?

Sita: I can give you 2 litres of milk in return of my potatoes.

Ram: I don't need milk, but I want a pair of shoes.

Which of the following problem is being faced by Sita and Ram in their exchange process?

a)

Lack of store of value.

b)

Absence of common unit of value.

c)

Lack of coincidence of wants.

d)

Lack of standard of deferred payment.

10.

People have the provision to withdraw money as and when they require. Since the deposits in the bank can be withdrawn on demand, these are called (a)   .