Historical Development of Money - SS1 Economics Past Questions and Answers - page 1
1
What is the earliest form of trade?
A
Bartering
B
Paper money
C
Credit card
correct option: a
Users' Answers & Comments2
What was the first commodity used as money?
A
Cowrie shells
B
Precious metals
C
Salt
correct option: a
Users' Answers & Comments3
What are the two main types of money?
A
Physical currency and digital currency
B
Coins and bank deposits
C
Bartering and commodities
correct option: a
Users' Answers & Comments4
What was the problem with bartering as a means of trade?
Bartering required a coincidence of wants between two parties, which made trade difficult.
5
How was this problem solved?
To solve the problem of bartering, people began using commodities such as cowrie shells, salt, and precious metals as a medium of exchange. These commodities eventually evolved into coins and paper money, which became widely accepted in trade and commerce.