NCERT Solutions for Class 7 Social Science Chapter 11: From Barter to Money

1. How does the barter system take place and what kinds of commodities were used for exchange under the system?

Ans: The barter system takes place when people directly exchange goods or services for other goods and services without using money. Commodities used for exchange included food grains, handmade objects, beads, stones, vegetables, fruits, and other useful products.

2. What were the limitations of the barter system?

Ans:

• Difficulty in finding double coincidence of wants

• Lack of a common measure of value

• Issues with divisibility

• Difficulties in portability

• Problems with the durability of goods
  
  

3. What were the salient features of ancient Indian coins?

Ans:

• Known as kārṣhāpaṇas or paṇas

• Made from alloys like gold, silver, and copper

• Featured punched symbols called rūpas

• Created through a process called minting

• Carried various motifs and symbols
  
  

4. How has money as a medium of exchange transformed over time?

Ans: Money has evolved from the barter system to the use of shells, metallic coins, paper currency, and now digital forms like cards and UPI, making transactions more convenient and secure over time.

5. What steps might have been taken in ancient times so that Indian coins could become the medium of exchange across countries? Ans:

• Standardizing coin designs, weights, and metal content for acceptability

• Establishing trade networks through maritime activities

• Using symbols, motifs, and rulers’ emblems to indicate authenticity

• Making coins from valuable metals to enhance trust

• Expanding international trade, spreading coin usage abroad

• Regular government-supervised minting for uniformity

• Acceptance by traders in various markets to strengthen cross-border usability
  
  

6. Read the following lines from the Arthaśhāstra. “An annual salary of 60 paṇas could be substituted by an āḍhaka of grain per day, enough for four meals...” (One āḍhaka is equal to about 3 kg) What does this indicate about the value of one pana?

The fine for failing to help a neighbour was 100 panas. Compare this with the annual salary. What conclusion can you draw about the human values being encouraged through this?

Ans: The first statement shows that one paṇa had significant value, as an annual salary of 60 paṇas could be replaced by one āḍhaka (around 3 kg) of grain per day. This means even a small number of paṇas could buy enough food for several meals, indicating that the currency had strong purchasing power.

The second statement—where the fine for not helping a neighbour is 100 paṇas, much higher than the yearly salary—shows that Kautilya’s laws valued social responsibility and compassion very highly. It encouraged people to help others in need and promoted community welfare, cooperation, and moral duty over personal gain.

7. Write and enact a skit to show how people may have persuaded each other to use cowrie shells (or other items) as the medium of exchange.

Ans: Person A: "Carrying wheat is difficult. Why don't we use these cowrie shells instead? Everyone can recognize and accept them easily!" Person B: "But can I trade these shells with others?" Person A: "Yes, if everyone agrees. They're small, easy to carry, and don’t spoil. Let's tell others and start using cowrie shells for all exchanges."

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.

Ans: 

• Watermarks

• Security threads

• Micro-lettering

• Optically variable ink

• See-through registration devices

• Tactile marks for the visually impaired
  
  

9. Interview some family members and local shopkeepers: do they prefer cash or UPI? Why?

Ans: Many family members and shopkeepers may prefer UPI because it’s quick, convenient, and doesn’t require physical cash. Some still favor cash for small transactions or where digital infrastructure is not available. Preferences can depend on ease, trust, and technology access.

From Barter to Money: Understanding Economic Life

Mastering the journey from barter to money is essential for Class 7 Social Science. Dive deep into the chapter with NCERT Solutions Class 7 Social Science Chapter 11 From Barter to Money (2025-26) to strengthen your foundation for exams and everyday understanding.

This chapter explains how exchange systems evolved—from simple barter to modern digital payments. Learning the basic functions of money can help you answer questions clearly and develop strong reasoning in economic concepts.

Revise key terms like barter system, portability, durability, and digital money. Practice with NCERT exercises to boost accuracy and confidence during exams. A clear grasp of these fundamentals ensures higher scores and practical knowledge for real-life situations.