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Money – What it is?: NBSE Class 9 Financial Literacy
Get summary, textual answers, solutions, notes, extras, MCQs, PDF to NBSE Class 9 Financial Literacy. However, the educational materials should only be used for reference, and students are encouraged to make necessary changes.
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Summary
The chapter provides a brief history of money, tracing its evolution from the barter system to modern currency. Initially, there was no physical form of money, and people exchanged goods directly through the barter system. However, this system had limitations as it relied on the availability of goods based on individual needs. Over time, the use of metals like silver and gold replaced barter, offering a solution to the challenges of direct exchanges.
As trade expanded, carrying heavy bags of metal coins became impractical, leading to the introduction of paper money. The chapter notes that the earliest coins were minted in Lydia, an ancient kingdom in what is now Turkey, during the 7th century BC. These coins were made by stamping lumps of metal with symbols to guarantee their weight. Paper money first appeared in China during the 10th century, where pieces of deer skin were initially used as currency. Eventually, paper was used, but due to rising prices, China discontinued paper money in the 15th century.
In Europe, paper money was adopted much later. The first European paper mill was established in Spain in 1151 AD. As trade grew, people left their coins with merchants and received handwritten receipts in return, which evolved into paper currency. The chapter also touches on the history of money in India, mentioning the introduction of paper money by the Mughal Empire in 1236 AD. India also issued some of the earliest coins, and the word “rupee” comes from the Sanskrit word “rupyakam,” meaning silver.
The chapter explains that money serves as a medium of exchange, helping people meet their needs and conduct trade. It highlights the journey from simple barter to the complex systems of currency used today.
Textual MCQs
1. Exchange of commodity with another commodity is called
(a) exchange system
(b) barter system
(c) symbolic value system
Answer: b. barter system
2. Paper money was invented in
(a) China
(b) India
(c) America
Answer: a. China
3. Metal coins were invented by
(a) Indians
(b) Chinese
(c) Lydians
Answer: c. Lydians
4. In ancient times metal coins were made of
(a) precious metals
(b) inexpensive metals
(c) leather
Answer: a. precious metals
5. Which of the following term describes money?
(a) real value
(b) goods and services
(c) medium of exchange
Answer: c. medium of exchange
Extra/additional MCQs
1. What was one of the earliest examples of money in Babylon?
A. Coins
B. Shekel
C. Salt
D. Wheat
Answer: B. Shekel
2. What metal was used as money in the bronze age in the Eastern Mediterranean?
A. Gold
B. Iron
C. Copper
D. Silver
Answer: C. Copper
3. Which crop was used in the barter system as money?
A. Rice
B. Corn
C. Wheat
D. All of the above
Answer: D. All of the above
4. What system was used for trading goods before the invention of money?
A. Credit System
B. Barter System
C. Banking System
D. Commodity Exchange
Answer: B. Barter System
5. What type of currency was wampum in early America?
A. Paper money
B. Shell beads
C. Metal coins
D. Crops
Answer: B. Shell beads
6. When was the first wampum factory in New Jersey closed?
A. 1759
B. 1859
C. 1959
D. 1659
Answer: B. 1859
7. Which civilization developed a system of payment using weighed amounts of precious metal?
A. Romans
B. Greeks
C. Egyptians
D. Chinese
Answer: C. Egyptians
8. When were the first coins made in the Kingdom of Lydia?
A. 7th century BC
B. 10th century BC
C. 6th century AD
D. 8th century AD
Answer: A. 7th century BC
9. In which country was the earliest paper money invented?
A. India
B. China
C. Egypt
D. Greece
Answer: B. China
10. Why did China discontinue the use of paper money in 1455 AD?
A. Lack of resources
B. Increased prices
C. Introduction of coins
D. Invasion
Answer: B. Increased prices
11. When was the first paper mill in Europe established?
A. 1236 AD
B. 1151 AD
C. 1455 AD
D. 1695 AD
Answer: B. 1151 AD
12. Which country had the first bank to issue printed money in Europe?
A. Sweden
B. Spain
C. France
D. Norway
Answer: A. Sweden
13. In which century did India begin issuing coins?
A. 5th Century BC
B. 6th Century BC
C. 7th Century AD
D. 8th Century AD
Answer: B. 6th Century BC
14. Which emperor introduced the original Rûpaya coin in India?
A. Akbar
B. Sher Shah Suri
C. Aurangzeb
D. Babur
Answer: B. Sher Shah Suri
15. What was the original Rûpaya coin made of?
A. Gold
B. Silver
C. Copper
D. Bronze
Answer: B. Silver
