(Being some exercises Arth does to keep his promise- To Remember)
(Tick the answer that is most appropriate)
1.1 What is Money?
a. Something that makes the world go round
b. Time is Money and Money is Time
c. The purpose of life
d. Anything that is generally acceptable as a means of payment
1.2 Which of these is NOT a function of Money
a. Means of exchange
b. Unit of account
c. Store of value
d. Means to transport goods
1.3 In the story, the system of exchanging of goods you have, for the goods you want, had the following drawback:
a. It was not possible to exchange apples for oranges.
b. Cows after being exchanged came back home
c. It was difficult to find someone who needed what you had and also had what you needed.
1.4 The system of using precious metals as a standard commodity for buying and selling had the following drawback:
a. There wasalways a fear that precious metals would be stolen
b. The cost of verifying the quality (weight and fineness) of precious metals took too much time and effort.
c. It was difficult to carry precious metals
1.5 Coins were an innovative way of buying and selling because:
a. They could also be tossed to make decisions related to buying and selling
b. They could not be easily duplicated
The Old Man Monetary is copyright of Reserve Bank of India and is posted here in public interest and to spread banking awareness among kids.