Money Reading Answers

Nov 15, 2023

Money Reading Answers is a general reading topic. Money Reading Answers have a total of six IELTS questions in total. The specified topic generates a single question type: choose the correct heading. Candidates should read the IELTS Reading passage thoroughly in order to recognize synonyms, identify keywords, and answer the questions below. IELTS reading practice papers, which feature topics such as Money Reading Answers. Candidates can use IELTS reading answers to enhance their performance in the reading section.

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Section 1

Read the Passage to Answer the Following Questions

Money Reading Answers

In China, the issue of paper money became common from about 960 but there had been occasional issues long before that. A motive for one such early issue, in the reign of Emperor Hien Tsung 806-821, was a shortage of copper for making coins. A drain of currency from China, partly to buy off potential invaders from the north greater reliance on paper money with the result that by 1020 the quantity issued was excessive, causing inflation. In subsequent centuries there were several episodes of hyperinflation, and after about 1455, after well over 500 years of using paper money, China abandoned it.
With the revival of banking in western Europe, stimulated by the Crusades, written instructions in the form of bills of exchange came to be used as a means of transferring large sums of money, and the Knights Templar and Hospitallers functioned as bankers. It is possible that the Arabs may have used bills of exchange at a much earlier date, perhaps as early as the eighth century. The use of paper as currency came much later.
During the English Civil War, 1642-1651, goldsmiths' safes were secure places for the deposit of jewels, bullion and coins. Instructions to goldsmiths to pay money to another customer subsequently developed into the cheque. Similarly, goldsmiths' receipts were used not only for withdrawing deposits but also as evidence of ability to pay and by about 1660 these had developed into banknotes.
In England's American colonies a chronic shortage of official coins led to various substitutes being used as money, including, in Virginia, tobacco, leading to the development of paper money by a different route. Tobacco leaves have drawback as currency, and consequently, certificates attesting to the quality and quantity of tobacco deposited in public warehouses came to be used as money and in 1727 were made legal tender.
Although paper money obviously had no intrinsic value, its acceptability originally depended on its being backed by some commodity, normally precious metals. During the Napoleonic Wars convertibility of Bank of England notes was suspended and there was some inflation which, although quite mild compared to that which had occurred in other wars, was worrying to contemporary observers who were used to stable prices and, in accordance with the recommendations of an official enquiry, Britain adopted the gold standard for the pound in 1861.
The break with precious metals helped to make money a more elusive entity. Another trend in the same direction was the growing interest in forms of electronic money from the 1990s onwards. In some ways, e-money is a logical evolution from the wire transfers that came about with the widespread adoption of the telegraph in the 19th century, but such transfers had relatively little impact on the everyday shopper.

Section 2

Solution and Explanation

Questions 7 - 12

The reading passage has six paragraphs, A-F

Choose the correct heading for paragraphs, A-F, from the list below.
Write the correct number, i-ix, as your answer to each question.

List of Headings

Bills of exchange precede paper money
The English Civil War
Advent of the Gold standard
The Knights Templar
Recurrence of paper currency
Goldsmiths in the role of bankers
Scarcity of copper coins
Virginian money
'Intangible' money

Paragraph A

Answer: v
Supporting statement: “..... A motive for one such early issue, in the reign of Emperor Hien Tsung 806-821, was a shortage of copper for making coins.......”
Keywords: reign, shortage
Keyword Location: para A, line 2
Explanation: There was some issues going on with the paper money. There was shortage of copper which was used to make coins. Hence they needed to move to paper currency.

Paragraph B

Answer: i
Supporting statement: “......form of bills of exchange came to be used as a means of transferring large sums of money, and the Knights Templar and Hospitallers functioned as bankers.......”
Keywords: exchange, money
Keyword Location: para B, line 2
Explanation: It is given that the people at that time used to exchange bills mentioned about the amount of money to be paid. This was used as a way to exchange large sums of money.

Paragraph C

Answer: vi
Supporting statement: “.......goldsmiths' safes were secure places for the deposit of jewels, bullion and coins. Instructions to goldsmiths to pay money to another customer subsequently developed into the cheque......”
Keywords: jewels, coins
Keyword Location: para C, line 2
Explanation: The safest place during the English war to keep the jewelry and coins were the safes of goldsmiths. Also goldsmiths started paying money to other people in the form of cheques.

Paragraph D

Answer: viii
Supporting statement: “.....In England's American colonies a chronic shortage of official coins led to various substitutes being used as money, including, in Virginia, tobacco.....”
Keywords: chronic, coins
Keyword Location: para D, line 1
Explanation: It is given that the American people had a huge shortage of copper to make coins. Hence they shifted to tobacco leaves to make money. It was called virginian money.

Paragraph E

Answer: iii
Supporting statement: “..... Britain adopted the gold standard for the pound in 1861......”
Keywords: gold, standard
Keyword Location: para E, line 5
Explanation: It is said that earlier people were hesitating accepted paper as a currency because it was only backed by the fact it holds some value and people must believe it. Hence they started to define a standard for pound using gold.

Paragraph F

Answer: ix
Supporting statement: “.....In some ways, e-money is a logical evolution from the wire transfers that came about with the widespread adoption of the telegraph ......”
Keywords: e-money, widespread
Keyword Location: para F, line 3
Explanation: It is given that after the 1990s, there were a lot of transfers of e-money. It was digital money and could not be held in hand. Hence the use of metals and papers was eliminated. It was intagible

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