NCERT Class 7 Social Science Exploring Society India and Beyond Part-I: Chapter 11 — From Barter to Money
This chapter, "From Barter to Money," from NCERT's Class 7 Social Science book "Exploring Society: India and Beyond Part-I," delves into the historical evolution of exchange systems. It begins by explaining the barter system, where goods and services were exchanged directly without the use of money. Examples like exchanging an eraser for a pencil illustrate this concept. The chapter highlights that various commodities such as cowrie shells, salt, tea, cloth, cattle, and seeds were historically used as forms of money across different cultures and regions. It also introduces the concept of money as a universally accepted tool for transactions and briefly touches upon modern digital payment methods. The text emphasizes how money serves as a crucial link between present needs and future possibilities, transforming economic life.
Quick info
| Board | CBSE / NCERT |
|---|---|
| Class | Class 7 |
| Subject | Social Science |
| Book | Exploring Society India and Beyond Part-I |
| Chapter | Chapter 11 — From Barter to Money |
| Language | English |
| PDF type | NCERT Textbook |
| Session | CBSE 2026 |
| Reading time | 3 minutes |
| Word count | 455 |
Learning outcomes
- Understand the concept and working of the barter system.
- Identify various historical commodities used as money.
- Recognize the role of money as a medium of exchange.
- Appreciate the evolution of economic transactions over time.
Vocabulary
| Word | Meaning |
|---|---|
| Barter System | A way of exchanging goods and services without using money. |
| Money | A common tool that everybody accepts and uses to make or receive payments. |
| Transaction | A piece of business that is done between people, especially an act of buying or selling. |
| Commodities | Products or goods that can be traded, bought, and sold. |
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Practice questions
- What is the barter system? Answer: The barter system is a way of exchanging goods or services for other goods and services without using money.
- Give an example of a commodity that was used as money historically. Answer: Cowrie shells, salt, tea, cloth, cattle, or seeds were used as money.
- What is money used for in today's society? Answer: Money is used to buy and sell things, and people also use mobile phones and computers for transactions.
Frequently asked questions
What was the earliest form of exchange before money?
The earliest form of exchange was the barter system, where people exchanged goods or services for other goods and services.
How did the barter system work?
In the barter system, individuals exchanged items they had for items they needed, like trading an extra eraser for an extra pencil.
What are some examples of commodities used as money historically?
Historically, commodities like cowrie shells, salt, tea, cloth, cattle, and seeds were used as money.
Where were Rai stones used as money?
Rai stones, giant discs of rock, were used as money on the Yap Island in the Pacific Ocean.
What is the definition of money according to the chapter?
Money is defined as the common tool that everybody accepts and uses to make or receive payments in exchange for goods and services.
What is a transaction?
A transaction is a piece of business that is done between people, especially an act of buying or selling.
Important topics
Topics covered
NCERT Class 7 Social Science — Exploring Society India and Beyond Part-I — Chapter 11 — From Barter to Money. Verified by NCERT Help Editorial Team. Reviewed on 29 Jul 2026. Last updated 10 Aug 2026.