Money is something we all take for granted in our lives. Some of us may wish we had more of it but we all recognize it when we see it, whether in the form of coins, notes or cheques. It is difficult to imagine how people managed without money. In the earliest periods of human history, people used to exchange goods directly. They would exchange things they had plenty of for things that they were in need of. For example, they might offer food for tools. This method of exchange, which is known as “barter”, has many disadvantages. Certain goods may be difficult to carry, they may not last long, or may be impossible to divide into smaller units. It can also be difficult to know the worth of something compared with other goods.

According to historians, the first money, in the sense we understand it today, consisted of gold coins produced about 2,500 years ago. Gold, being a very precious metal, was a suitable material. The introduction of gold coins was acceptable to everyone and they were still being used at the beginning of this century, although they have now been replaced by paper money and coins made of ordinary metals.

1. In the old days, people exchanged………..

A. what they needed for what they had B. food for tools

C. what they had for what they needed D. goods for money

2. “barter” is a system of exchange in which ………

A. food is exchanged for tools B. no money is used

C. money is used to buy things D. goods are difficult to carry

3. Direct exchange of goods is ……. because some gods may be too big to carry.

A. advantageous B. precious C. impossible D. disadvantages

4. According to historians, the first money was ………

A. made of paper B. made of gold C. made of coins D. made of 2000 years ago

5. Modern money is made of ……….

A. gold B. paper or gold

C. ordinary metals D. paper or ordinary metals