Class 6 – Basic Economics

Chapter 3: Money and Exchange

STAGE 0: Let Us Begin (Foundation)

People need many things in daily life 😊

To buy and sell things, people use money.

In this chapter, we learn about:

• Exchange
• Barter system
• Money

STAGE 1: Chapter Explanation (Story Style)

What is Exchange?

Exchange means giving one thing and getting another thing in return.

Example:

• Giving money to get vegetables
• Paying fees to get education

The Barter System

Long ago, people did not use money.

They exchanged goods for goods. This system is called the barter system.

Example:

• A farmer gives rice to get clothes
• A potter gives pots to get food

Problems of Barter System

• Hard to find the right exchange
• Value of goods was unclear
• Goods could not be stored easily

What is Money?

Money is something used to buy goods and services.

Money makes exchange easy.

Forms of Money

• Coins
• Currency notes
• Digital payments

Uses of Money

• Buying goods
• Paying for services
• Saving for future

STAGE 2: Textbook-Style Questions & Answers

Q1. What is exchange?
Answer: Exchange means giving one thing and getting another in return.

Q2. What is the barter system?
Answer: The barter system is exchanging goods for goods.

Q3. Why was barter difficult?
Answer: It was hard to decide value and find the right exchange.

Q4. What is money?
Answer: Money is used to buy goods and services.

STAGE 3: Exam Practice (Easy)

Question:
Give one example of exchange using money.

Answer:
Giving money to buy vegetables.

Exam Tip:
Write short and clear answers.

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Shaktimatha CBSE Learning
Basic Economics – Foundation Course

🧠 Quick Revision
• Exchange means give and take
• Barter is goods for goods
• Money makes exchange easy