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Read the following paragraph and answer the following questions.Over time, people preferred scarce and attractive metals as medium of exchange. Copper, bronze, silver and gold are durable, can be divided into parts and be carried around. Since they were scarce, they became acceptable by all. People could buy and sell with the assurance that the money they had in hand would be valuable and sought by others. They did not have to worry that their money might lose value as could happen with grains or cattle. However, some problems remained and new problems came up. For every exchange, the metal had to be weighed and later on traders were not sure about the quality of the metal. What one might get in exchange may not be pure gold or silver. After sometime, there was a serious problem of trust in the quality of metal that was used as money for exchange.1. Name some durable metals.2. What was the assurance of the people?3. Why did the people not have to worry?4. Are all the problems solved with the invention of money?5. People preferred scarce and attractive metals as

Answer»

1) Copper, bronze, silver and gold

2) People could buy and sell with the assurance that the money they had in hand would be valuable and sought by others.

3) They did not have to worry that their money might lose value as could happen with grains or cattle.

4) With the invention of money, some problems remained and new problems came up.

5) Medium of exchange.



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