The History Of Money

Question 1

What are 5 advantages of bartering?

Answer 1

1.It is a basic system.
2.No problems in producing too much or too little.
3.No wasting of goods as people only exchange for what they want.
4.Two people get what they want and get rid of what they don’t want at the same time.
5.No taxes are added when bartering.

Question 2

What are 5 disadvantages of bartering?

Answer 2

1.A person could not find just one supplier of all they wanted.
2.Bartering over long distances was a problem.
3.Two peoples wants needed to coincide.
4.There was no common measure of value.
5.Some goods cannot be divided into smaller amounts.

Question 3

What were promissory noted commonly referred as?

Answer 3

Promissory noted were commonly referred as ‘IOU’ which literally translates as ‘I Owe You’

Question 4

Which country was the first to introduce paper money?

Answer 4

China was the first country to introduce paper money.

Question 5

What were the problems when paper money was first used?

Answer 5

Too many notes were produced and they lost their value.So it disappeared for hundreds of years before returning.

Question 6

List the features on a bank note that makes counterfeiting money difficult.

Answer 6

1.Watermarks.
2.Serial Number.
3.Governor’s Signature.
4.Metallic Strip.
5.Matching pattern on sides.
6.Brail.