The Evolution of Money: From Barter to Coins

The Barter System – Trading Apples for Goats, what was a major problem with the barter system?

• It was too easy to use

• The double coincidence of wants

• There was too much money

• People only traded coins

In the barter system, goods and services were exchanged directly, with no ______ involved.

• money

• contract

• receipt

• bank

Which of the following is NOT mentioned as an example of commodity money?

• Cowrie shells

• Salt

• Tea bricks

• Paper bills

Why was commodity money considered an upgrade from bartering?

• It was easier to fake

• It allowed people to assign clear value to things

• It was always made of gold

• It could not be counted easily

Fill in the blank: The first coins were made around ______ BCE in Lydia.

• 600

• 1200

• 300

• 900

According to the passage, what was one of the main advantages of coins over earlier forms of money?

• They were lighter than paper money

• They made value standardized and trusted

• They could not be counterfeited

• They were made only of gold

Fill in the blank: Paper money was first used in China during the ______ Dynasty around the 7th century.

• Tang

• Song

• Ming

• Qing

Roman coins often had pictures of emperors, while Chinese coins were round with square holes so they could be strung together.

• True

• False

One problem with paper money mentioned in the passage is:

• It can be easily counterfeited.

• It is too heavy to carry.

• It is made of metal.

• It cannot be used for large purchases.

According to the passage, what is a potential risk of digital money?

• It is too heavy to carry

• It can be hacked or lost in a power outage

• It cannot be used for large transactions

• It is only available in gold or silver