Lesson 5 - ROLE OF MONEY

Competence 1.5 Note for teacher:

In this lesson the students should be made to understand ,through exposure and experience , the role of money in various economic transactions

as a means and measure of exchange.

Money is used to pay for things you buy.

How much money did they pay for it?

Money is called Rupees.

Money can be notes or coins.

Money is kept safely in a place called BANK.

People keep their money in a Bank.

Can you name some Bank?

Now read this story of a one Rupee coin.

STORY OF A ONE RUPEE COIN.

Hello ! I am a one rupee new coin.

I was in a bank called Tin-Tin Bank.

Hassan sold flowers to the Bank.

I was given to Hassan.

Hassan went to Ramu the balloon seller.

He wanted balloons for birthday.

Hassan gave me to Ramu in exchange for the balloons.

Ramu went to Pete the baker.

Ramu bought biscuits.

Ramu paid for the biscuits by giving me to Pete.

Pete went to Sham the book seller.

Pete bought a pencil.

Pete paid for the pencil by giving me to Sham.

Sham was very clever.

He wanted to save his money.

Sham put me back in Tin-Tin Bank.

I am happy .

I have come back to my Bank.

LESSON 5: EX.1 WHO GAVE TO WHOM?

Rearrange the following in the order in which the one rupee coin went from one place to another.Orally explain why each

one gave the coin to the other.

Pete, Sham, Hassan, Bank,Ramu

LESSON 5: EX.2 WHY WE NEED MONEY?

(Any of the answers to Q1. whether positive or negative should be appreciated . “ Yes “ answer indicates about barter system and “No” answer creates a need for monetary system. Teacher explains that the shopkeeper may not need a toy car and thus may not accept it. The teacher explains the difference between exchange of goods for goods and exchange of goods for money).

Anand is a student.

He wants to buy a biscuit pack.

Anand goes to a shop.

Anand has a toy .

Anand gives his toy to the shopkeeper .

“Can I have the biscuit pack in exchange for this toy?” Asks Anand.

1. Will the shopkeeper give him the biscuit pack in exchange for the toy car ? Explain your answer.

2. Will the shopkeeper ask for money instead of toy car ? Explain.

3. Do you need money to buy things ? Explain orally.

LESSON INDEX