Question

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?

• A. Metal money was diffuclt to make.
• B. Metal money was heavy to carry during a long trade journey.
• C. Coins were made from cheaper metals.
• D. Metals were available in limited amounts.

Answer 1

Answer: (C), (D)

Metals were available in limited amounts.

Earlier, metals like gold, silver, and copper were used as money because they were rare to find and could be maintained for a longer time. Such money was known as ancient money. However, metals were available in limited amounts and they had to be mined. So, people started making coins from cheaper metals. They were assigned lesser values and were mainly used by the poor people.