Chapter 11 Solutions — From Barter to Money

Questions and Activities

1. 1.
   How does the barter system take place and what kinds of commodities were used for exchange under the system?
2. 2.
   What were the limitations of the barter system?
3. 3.
   What were the salient features of ancient Indian coins?
4. 4.
   How has money as a medium of exchange transformed over time?
5. 5.
   What steps might have been taken in ancient times so that Indian coins could become the medium of exchange across countries?
6. 6.
   Read the following lines from the Arthashastra …
7. 7.
   Write and enact a skit to show how people may have persuaded each other to use cowrie shells (or other such items) as the medium of exchange.
8. 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.
9. 9.
   Interview a few of your family members and local shopkeepers, and ask them their preferences in making and receiving payments — do they prefer cash or UPI? Why?