CBSE Class 7 Social Science From Barter to Money (Class 7 NCERT New) Quiz 3

1. Name one advantage of barter.

A Eliminates the need for money. B Reduces the need for negotiation. C Facilitates international trade easily. D Increases reliance on cash transactions.

2. What is a disadvantage of using barter?

A Barter allows for easy international trade. B The double coincidence of wants. C Barter eliminates the need for money. D Barter is always more efficient than currency transactions.

3. What is a modern form of money?

A Gold bars B Real estate C Stocks and bonds D Digital currencies (cryptocurrencies and CBDCs)

4. How does barter work in a simple economy?

A Barter requires a central currency for transactions. B Barter works by allowing individuals to trade goods and services directly based on mutual needs. C Barter is only effective in large economies with many participants. D Barter involves the use of contracts to enforce trades.

5. Why might barter be less efficient than using money?

A Barter allows for easier trade without any restrictions. B Barter is less efficient than using money due to the need for a double coincidence of wants. C Barter can be used to store value over time like money. D Barter eliminates the need for negotiation between parties.

6. What role did gold play in the history of money?

A Gold served as a form of tax payment in ancient civilizations. B Gold was only valuable in specific regions and had no global significance. C Gold acted as a standard of value and medium of exchange in the history of money. D Gold was primarily used for jewelry and decoration.

7. Can you give an example of a situation where barter might be useful?

A A musician trading concert tickets for art supplies. B A teacher exchanging books for tutoring sessions. C A chef swapping recipes for kitchen equipment. D A farmer trading vegetables for carpentry services.

8. How has technology changed the way we use money today?

A Technology has made money usage more digital, convenient, and instantaneous. B Technology has increased the use of physical currency. C Technology has made cash transactions more common. D Technology has eliminated the need for any form of payment.

9. A student needs a pencil and has an extra eraser. A classmate needs an eraser and has an extra pencil. What is the best way for them to complete their exchange without using money?

A Trade the items directly with each other B Sell the items to a store for cash C Borrow money to buy new supplies D Wait until a sale to buy cheaper items

10. Early communities sometimes used cowrie shells, salt, or cattle to make payments. What feature made these items useful as early forms of money?

A They were widely accepted by people B They were impossible to carry around C They were always shiny and beautiful D They could only be used once