ECONOMICS
MONEY
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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medium of exchange
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unit of account
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store of value
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None of the above
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Detailed explanation-1: -In Orissa, India, cowry (popularly known as kaudi) was used as currency until 1805 when it was abolished by the British East India Company and rupee was enforced. This was one of the causes of the Paik Rebellion in 1817.
Detailed explanation-2: -The barter system is a system of exchange of goods or services directly with goods and services. Under this system agricultural produce, cattle etc was used as a medium of exchange.
Detailed explanation-3: -In simple words, money can be defined as a medium for transaction of goods and services. Some of the popular definitions of money are as follows: Robertson has defined money as “Anything which is widely accepted in payment for goods, or in discharge of other kinds of obligations.”
Detailed explanation-4: -But when traders arrived from India, they would not sell their goods for cowrie shells because such shells were abundant in India. To Indians, cowrie shells were worthless.