The Evolution of Money Reading Answers

Jul 31, 2025

The Evolution of Money Reading Answers is an academic reading answers topic. The Evolution of Money Reading Answers has a total of 13 IELTS questions, such as match the headings below to the sections of the text. Write the correct letter i-v. Choose no more than three words. Write no more than three words.

The IELTS Reading section is an essential part of the test that evaluates a candidate's comprehension and analysis of various passage types. You will work through a number of IELTS reading practice problems in this section that resemble actual test situations. These questions are designed to help you improve your ability to recognise essential concepts, extract particular facts, and make inferences. Practising these IELTS reading problems can help you get comfortable with the structure and increase your confidence for the exam, regardless of whether you are studying for the Academic or General Training module.

Check: Get 10 Free Sample Papers
Check: Register for IELTS Coaching - Join for Free Trial Class Now

Section 1

THE EVOLUTION OF MONEY

A.Throughout human history, the concept of money has undergone a remarkable evolution. From simple barter systems to the complex world of digital currencies, money has played a pivotal role in shaping economies and societies. In the earliest stages of human civilization, people relied on the barter system for trade. Goods and services were exchanged directly. However, as both parties had to want what the other was selling, transactions were not always smooth. To overcome this, communities turned to commodity money. This form of money had intrinsic value, like precious metals or agricultural products. Items like shells, salt, and grains were universally accepted for trade, providing a common medium of exchange.

B.In the 6th century BCE, the Lydians, an ancient people of Asia Minor, introduced the first official currency: the Lydian stater. These coins, crafted from electrum, a natural blend of silver and gold, were stamped with symbols to guarantee their authenticity and value. This marked a significant step towards standardised currency, enabling both internal and external trade, catapulting Lydia to great economic prosperity.

C.Around 1260 CE, the Mongol-founded Yuan dynasty in China made a groundbreaking shift from coins to paper money. Unlike the Tang dynasty, they created a unified, national system that was not backed by silver or gold. The currency issued by the Yuan was the world's first fiat currency, known as Jiaochao. This innovation drastically altered the financial landscape, allowing for greater flexibility in transactions. Merchants could now avoid the weight and security issues associated with carrying large quantities of coins. Although the Mongols at first preferred to have every banknote backed up by gold and silver, high government expenditures forced the Yuan to create fiat money in order to sustain government spending. Meanwhile, in Europe, metal coins continued to dominate until the 16th century. The Renaissance era saw the emergence of banking institutions in Italy. Banks issued promissory notes, essentially IOUS, allowing individuals to deposit their valuable assets securely. These notes could be exchanged for goods or redeemed for the equivalent value in coins. This gave rise to modern banking systems, creating a foundation for financial institutions that endure to this day.

D.As empires expanded, the need for standardised currencies became imperative. Colonial powers established central banks to regulate and issue currency. The Bank of England, founded in 1694, was a notable example. Central banks provided stability to economies by managing the money supply, interest rates, and controlling inflation. They began to play a key role in dealing with financial challenges and managing the national debt. Countries with a better-managed currency, more sophisticated banking systems, and lower levels of national debt could borrow more cheaply during times of conflict, thus enjoying a significant advantage over their enemies. On the other hand, countries where the government was less successful at managing its currency, and where excessive currency debasement led to serious inflation, were in a much weaker position when looking for funding.

E.During the 19th and early 20th centuries, many countries adopted the gold standard. This system pegged a country's currency to a specific amount of gold. With a fixed exchange rate to gold, the currency's worth was directly tied to the country's gold reserves. This mechanism helped establish a deeper trust in a nation's monetary system, bolstering international trade and investment. However, the lack of flexibility of the gold standard also gave rise to economic challenges, particularly during times of crisis. Economists like John Maynard Keynes argued that the fixed supply of gold constrained a nation's ability to respond effectively to economic downturns. This was particularly evident during the Great Depression, when countries adhering to the gold standard found their hands tied in implementing monetary policies to stimulate their economies.

F.In the mid-20th century, in the wake of the economic upheaval brought about by the Great Depression and the strains of World War II, nations gradually began to abandon the gold standard. The Bretton Woods Conference of 1944 marked a pivotal moment where world leaders convened to reshape the international monetary system. Under this new framework, currencies were pegged to the US dollar, which was, in turn, linked to gold. This system offered

more flexibility compared to the rigid gold standard, allowing for adjustments in exchange rates to accommodate economic fluctuations. Ultimately, by the early 1970s, mounting economic pressures and a series of currency crises led to the complete dissolution of the Bretton Woods system, effectively severing the last remaining ties between major currencies and gold. This marked the definitive end of the gold standard era. While it had served as a cornerstone of global finance for close to two centuries, the system's limitations had become increasingly evident in the face of modern economic complexities.

G.In the 21st century, a new era of payment methods emerged with the introduction of mobile payments. Enabled by portable electronic devices like smartphones and tablets, these transactions streamlined commerce, evolving from text-based payments to even allowing cheque deposits via camera apps. Simultaneously, virtual currencies emerged as a digital representation of money, offering lower transaction fees and decentralised authority. Bitcoin, introduced in 2009 by the pseudonymous Satoshi Nakamoto, spearheaded this revolution, paving the way for other virtual currencies like Ethereum, XRP, and Dogecoin.

H.The history of money is a testament to human ingenuity and adaptability. From bartering in ancient marketplaces to the introduction of cryptocurrencies in the digital age, money has undergone remarkable transformations. As we stand on the cusp of a new era in electronic transactions, one thing remains certain: as long as humans require a medium of exchange, the story of money will continue to unfold, shaping the economic landscapes of generations to come.

Questions 27-31

Match the headings below to the sections of the text. Write the correct letter i-v.

HEADINGS

i. The dawn of standardised metal coins

ii. Moving beyond precious metals

iii. Economic consequences of poor money management

iv. Linking money to a fixed commodity

v. The latest trends in digital money

27. Section B

Answer: I

Supporting statement: "In the 6th century BCE, the Lydians, an ancient people of Asia Minor, introduced the first official currency: the Lydian stater. These coins, crafted from electrum, a natural blend of silver and gold, were stamped with symbols to guarantee their authenticity and value. This marked a significant step towards standardised currency…"

Keywords: Lydian stater, coins, stamped

Keyword Location: Para B, Lines 1-3

Explanation: Section B explicitly describes the introduction of the Lydian stater, highlighting its significance as the first official and standardised metal coin. This directly matches the heading The dawn of standardised metal coins.

28. Section C

Answer: II

Supporting statement: "Around 1260 CE, the Mongol-founded Yuan dynasty in China made a groundbreaking shift from coins to paper money……The currency issued by the Yuan was the world's first fiat currency, known as Jiaochao."

Keywords: paper money, silver or gold, fiat currency

Keyword Location: Para C, Lines 1-3

Explanation: Section C details the introduction of paper money by the Yuan dynasty, explicitly stating it was not backed by silver or gold and was the world's first fiat currency, indicating a move beyond traditional precious metals.

29. Section D

Answer: III

Supporting statement: "Countries with a better-managed currency, more sophisticated banking systems, and lower levels of national debt could……………and where excessive currency debasement led to serious inflation, were in a much weaker position when looking for funding."

Keywords: currency, banking systems, debasement, inflation

Keyword Location: Para D, Lines 6-9

Explanation: Section D highlights the contrast between well-managed currencies leading to advantages and poorly managed currencies leading to serious inflation and a weaker position, directly linking to the Economic consequences of poor money management.

30. Section E

Answer: IV

Supporting statement: "During the 19th and early 20th centuries, many countries adopted the gold standard. This system pegged a country's currency to a specific amount of gold. With a fixed exchange rate to gold, the currency's worth was directly tied to the country's gold reserves."

Keywords: gold standard, pegged, fixed exchange rate

Keyword Location: Para E, Lines 1-4

Explanation: Section E focuses entirely on the gold standard, explaining how a country's currency was pegged or directly tied to a specific amount of gold, which aligns perfectly with linking money to a fixed commodity.

31. Section G

Answer: V

Supporting statement: "In the 21st century, a new era of payment methods emerged with the introduction of mobile payments... Simultaneously, virtual currencies emerged as a digital representation of money... Bitcoin, introduced in 2009 by the pseudonymous Satoshi Nakamoto, spearheaded this revolution, paving the way for other virtual currencies like Ethereum, XRP, and Dogecoin."

Keywords: 21st century, mobile payments, virtual currencies, Bitcoin, Ethereum, XRP, and Dogecoin.

Keyword Location: Para G, Lines 1-7

Explanation: Section G discusses contemporary developments like mobile payments and the rise of virtual currencies such as Bitcoin, clearly describing the latest trends in digital money.

Questions 32-35

Choose NO MORE THAN THREE WORDS.

In 1944, international leaders met at the 32……………, where they introduced a system that linked major currencies to the US dollar.

Answer: BRETTON WOODS CONFERENCE

Supporting statement: "The Bretton Woods Conference of 1944 marked a pivotal moment where world leaders convened to reshape the international monetary system. Under this new framework, currencies were pegged to the US dollar…"

Keywords: Bretton Woods Conference, 1944

Keyword Location: Para F, Lines 2-4

Explanation: The text clearly states that the Bretton Woods Conference of 1944 was where world leaders convened to reshape the international monetary system and that currencies were pegged to the US dollar under this new framework.

The US dollar itself was backed by 33………… creating a semi-flexible monetary framework.

Answer: GOLD

Supporting statement: "Under this new framework, currencies were pegged to the US dollar, which was, in turn, linked to gold."

Keywords: framework, US dollar

Keyword Location: Para F, Lines 4-5

Explanation: The sentence explicitly states that the US dollar, under the Bretton Woods system, was, in turn, linked to gold.

However, during the 34…………, many countries found it difficult to manage their economies under this system.

Answer: GREAT DEPRESSION

Supporting statement: "This was particularly evident during the Great Depression, when countries adhering to the gold standard found their hands tied in implementing monetary policies to stimulate their economies."

Keywords: Great Depression, gold standard

Keyword Location: Para E, Lines 8-9

Explanation: While the question refers to the system after the gold standard (Bretton Woods), the information about difficulty managing economies is directly linked to the Great Depression in the context of the limitations of fixed systems, which led to the changes at Bretton Woods. The text indicates that the problems of the gold standard, particularly during the Great Depression, were a catalyst for the Bretton Woods system.

By the 35……………, the last links between currencies and gold were severed.

Answer: 1970s

Supporting statement: "Ultimately, by the early 1970s, mounting economic pressures and a series of currency crises led to the complete dissolution of the Bretton Woods system, effectively severing the last remaining ties between major currencies and gold."

Keywords: 1970s, complete dissolution, Bretton Woods system

Keyword Location: Para F, Lines 7-8

Explanation: The text clearly states that by the early 1970s, the Bretton Woods system dissolved, and this led to effectively severing the last remaining ties between major currencies and gold.

Questions 36-38

Write NO MORE THAN THREE WORDS.

36. The Yuan dynasty's currency allowed traders to avoid carrying

Answer: LARGE QUANTITIES OF COINS

Supporting statement: "Merchants could now avoid the weight and security issues associated with carrying large quantities of coins."

Keywords: Merchants, avoid, weight, security issues, large quantities of coins

Keyword Location: Para C, Lines 5-7

Explanation: The text explicitly states that the paper money of the Yuan dynasty allowed merchants to avoid the weight and security issues associated with carrying large quantities of coins.

37. Italian banks during the Renaissance issued to clients.

Answer: PROMISSORY NOTES

Supporting statement: "The Renaissance era saw the emergence of banking institutions in Italy. Banks issued promissory notes, essentially IOUS, allowing individuals to deposit their valuable assets securely."

Keywords: Renaissance, banking institutions, Italy, Banks

Keyword Location: Para C, Lines 9-10

Explanation: The paragraph clearly states that Banks issued promissory notes in Italy during the Renaissance.

38. Bitcoin was created by someone using the name

Answer: SATOSHI NAKAMOTO

Supporting statement: "Bitcoin, introduced in 2009 by the pseudonymous Satoshi Nakamoto, spearheaded this revolution, paving the way for other virtual currencies like Ethereum, XRP, and Dogecoin."

Keywords: Bitcoin, introduced, pseudonymous, Satoshi Nakamoto

Keyword Location: Para G, Lines 5-6

Explanation: The text directly attributes the creation of Bitcoin to the pseudonymous Satoshi Nakamoto.

Questions 39-40

Write NO MORE THAN THREE WORDS AND/OR A NUMBER.

39. In which century did the Lydians first introduce coins?

Answer: 6TH CENTURY BCE

Supporting statement: "In the 6th century BCE, the Lydians, an ancient people of Asia Minor, introduced the first official currency: the Lydian stater."

Keywords: 6th century BCE, Lydians, introduced, first official currency

Keyword Location: Para B, Lines 1-2

Explanation: The first sentence of Section B states, In the 6th century BCE, the Lydians… introduced the first official currency.

40. What material were the Lydian coins made from?

Answer: ELECTRUM

Supporting statement: "These coins, crafted from electrum, a natural blend of silver and gold, were stamped with symbols to guarantee their authenticity and value."

Keywords: coins, electrum, silver and gold

Keyword Location: Para B, Lines 2-3

Explanation: The text clearly states that the Lydian coins were crafted from electrum.

Read More IELTS Reading Related Samples