Money and Its Features

Q. Metals were used as money because they were rare and durable. However, as trade expanded, it became difficult to use metals as a medium of exchange. Why?

1. Metal money was diffuclt to make.
2. Metal money was heavy to carry during a long trade journey.
3. Coins were made from cheaper metals.
4. Metals were available in limited amounts.

Q. Why is paper money used as a medium of exchange across the world?

1. Paper money is lightweight and easy to carry.
2. Paper money can be stored and used later.
3. Paper money can help in making future payments.
4. Paper money can be a standard unit of measurement of the total value of goods.

Q. Barter system made certain things difficult, leading to the need for money. What features of money solved the difficulties of the barter system?

1. Money can be used as a medium of exchange.
2. Money can be used to make future payments.
3. Money can be stored.
4. Money can be easily carried from one place to another.

Q. What was the money made from metals like silver and gold called?

1. Earth money
2. Ground money
3. Natural money
4. Man-made money