Q1
What is commodity money?
AValuable items used as money, like cattle or shells
BOnly paper money
COnly digital money
DNothing
CBSEClass 7 (CBSE)Social ScienceCh 11 · Topic 2
The Evolution of Money
Money evolved over time from barter to commodity money, then metal coins, and eventually paper currency and digital money.
Core concept
Commodity money used valuable items like cattle, grain, or shells as a medium of exchange, since these items were widely accepted and had inherent value.
How it works
Metal coins, made from gold, silver, or copper, became popular because they were durable, easy to carry, and could be divided into smaller units.
Why it matters
Paper currency developed later, initially representing a promise to pay a certain amount of gold or silver, making trade even easier and lighter to carry.
Key detail
Today, digital money, like online banking and mobile payments, represents the latest stage in money's evolution, allowing transactions without any physical cash.
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• Money evolved from barter to commodity money to coins to paper to digital.
• Commodity money used items like cattle or shells.
• Metal coins were durable and divisible.
• Paper currency represented a promise to pay gold or silver.
• Paper money was lighter and easier to carry.
• Digital money includes online banking and mobile payments.
• Digital money allows transactions without physical cash.
• Money's evolution made trade increasingly efficient.