CBSE Class 7 Social Science From Barter to Money (Class 7 NCERT New) Quiz 6

1. Assertion (A): The barter system was gradually replaced by money across the world. Reason (R): Barter had serious limitations — no standard of value, divisibility problems, portability issues and goods that perished quickly.

A Both A and R are true, and R correctly explains A B Both A and R are true, but R does NOT explain A C A is true, but R is false D A is false, but R is true

2. Assertion (A): Money acts as a store of value. Reason (R): Money can be kept safely for a long time and used for purchases whenever needed.

A Both A and R are true, and R correctly explains A B Both A and R are true, but R does NOT explain A C A is true, but R is false D A is false, but R is true

3. Assertion (A): Digital money is described as intangible. Reason (R): Digital money can be used to purchase real physical goods in shops and online.

A Both A and R are true, and R correctly explains A B Both A and R are true, but R does NOT explain A C A is true, but R is false D A is false, but R is true

4. Archaeologists digging in coastal Tamil Nadu discovered Chalukya coins — from a kingdom hundreds of kilometres away in central India. A historian gets very excited. Why?

A It proves the Chalukyas conquered Tamil Nadu B It proves ancient Indians buried treasure near the sea C It proves paper money was used before metal coins D It is direct physical evidence that coinage enabled long-distance maritime trade between regions

5. "Necessity is the mother of invention." A teacher writes this on the board and asks students to connect it to the story of money. Which student gives the BEST answer?

A Fatima: "Rulers invented coins to show off their power and wealth." B Layla: "Paper was invented first, then someone decided to print money on it." C Dev: "The frustrating problems of barter created an urgent need for something better — and that need gave birth to money." D Kiran: "Money was invented because people got tired of carrying heavy things."

6. Dr. Aisha runs a busy clinic. In a barter world, her 40 patients each bring different things — rice, cloth, firewood, a goat, vegetables. She has no way to know if a bag of rice equals the same value as a bundle of cloth or a consultation fee. Which problem is Dr. Aisha facing that money would instantly solve?

A She cannot carry all the goods home B Her patients refuse to bring anything valuable C She is unable to standardise and compare the value of what she receives D The goods will spoil before she can use them

7. A powerful king mints gold coins with his royal seal. Slowly, merchants from five neighbouring kingdoms begin accepting these coins too — even though those kingdoms have their own currencies. What invisible quality made outsiders trust and accept these coins?

A The weight of gold in each coin B The beauty of the design on the coins C The king's army forced neighbouring kingdoms to accept them D Trust in the coin's value — universal acceptance is what gives money its real power

8. It is 1860. India has no paper money yet — only heavy metal coins. Wealthy merchant Haridas must travel 500 kilometres to buy silk worth 10,000 coins. The coins weigh 30 kilograms. He can barely walk, let alone travel safely. Which invention introduced in India just one year later in 1861 would solve his problem — and which property of money does it represent?

A The telephone — medium of exchange B The railway — making portability unnecessary C Digital UPI — standard of deferred payment D Paper currency — a lighter, portable way to store and transfer value

9. What is a subsistence economy?

A An economy based on trade of surplus goods B An economy where people produce only enough to meet their basic needs C An economy driven by high levels of industrialization D An economy that relies on advanced financial systems

10. Which of the following is a key feature of a subsistence economy?

A Production of goods for profit B Export of large quantities of goods C Minimal surplus for trade D Use of modern technology in production