MCQ Questions

Question No. 1

Fill in the blanks.

Answer :

a) The exchange of goods without using money is called the ________ system.

b) In the barter system, trade depended on a ________ of wants.

c) Metal coins were the ________ form of money.

d) Paper currency was introduced in India during ________ rule.

e) Digital money is stored and transferred through ________ devices.

f) Old Indian coins were called ________ or panas.

Question No. 2

Write True or False.

Answer :

a) Barter trade is the most reliable form of modern exchange.

b) It is easy to divide an ox for exchange in barter.

c) Digital payments are often faster than using cash.

d) Coins with images of animals and gods were used in ancient India.

e) You can save money for future use because it stores value.

f) Only banks can use UPI for digital payments.

Question No. 3

Answer the following questions in short.

Answer :

a) What is the barter system?

b) Why was the double coincidence of wants a problem?

c) What are the main features of money that make it useful?

e) Give two examples of how digital payments are used in everyday life.

d) What is the role of the RBI in India’s monetary system?

Question No. 4

Answer the following questions in long.

Answer :

a) Explain the major problems of the barter system with examples.

b) Describe the journey of money from coins to digital payments.

c) How has the invention of money helped to solve the problems of trade?

Question No. 5

Distinguish between:

Answer :

1. Barter System and Money-Based Trade.

2. Coins and Digital Money.

Question No. 6

Which of these was not used for bartering in ancient times?

Answer :

Rice

Seashells

Plastic

Goats

Question No. 7

Which of these coins featured the image of Varaha, the boar avatar of Vishnu?

Answer :

Maurya coins

Gupta coins

Mughal coins

Chalukya coins

Question No. 8

Who manages the printing and circulation of paper currency in India?

Answer :

State Bank of India

Indian Government

Reserve Bank of India

Ministry of Finance

Question No. 9

UPI stands for:

Answer :

United Payment India

Unified Payments Interface

Unpaid Public Investment

Union Pay Internet

Question No. 10

What is the main problem with the barter system?

Answer :

Too many sellers

Double coincidence of wants

No goods to exchange

Easy trade

Question No. 11

What is a major benefit of digital money?

Answer :

It gets spoiled

It is hard to carry

It cannot be saved

It can be used for long-distance trade

Question No. 12

The first paper money was introduced in:

Answer :

Egypt

China

India

Europe

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