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Where Does Money Come From and How is it Issued?

In Economic and Management Sciences (EMS) Grade 7, the five types of economic activity in a traditional society are hunting, gathering, farming, herding, and bartering. These activities allowed people to be self-sufficient, meaning they provided everything for themselves without needing a modern bank or shop.

Five Types of Economic Activity That Would Take Place in a Traditional Society

While we buy and sell things in a modern society, traditional groups lived differently. By looking at the characteristics of traditional societies, we can see how these five activities kept everyone alive and well.

1. Hunting and Gathering

This is the oldest type of economic activity. Men usually hunted wild animals for meat, while women gathered fruits, nuts, and roots. They only took what they needed for subsistence living, ensuring they didn’t waste anything from nature.

2. Primitive Farming

Families grew their own crops like maize or vegetables on small pieces of land. They didn’t sell this food for money; they grew it to feed their own families. This is a perfect example of the self-sufficient meaning in action.

3. Pastoralism (Herding)

Many traditional society examples involve keeping livestock like cattle, sheep, or goats. These animals provided milk, meat, and skins for clothing. Animals were often seen as a sign of wealth instead of paper money.

4. Making Tools and Clothes

People used natural materials to make what they needed. They made clay pots for cooking, spears for hunting, and clothes from animal skins. This is another reason traditional societies did not need money—they made their own “goods” at home.

5. Bartering (Swapping Goods)

When one family had something another family needed, they used the bartering meaning of direct exchange. If you had extra grain and needed a clay pot, you simply swapped. There were many advantages of bartering, like building trust in the community.

From Traditional Activity to Modern Money

As these activities grew more complex, people realized that swapping items had limits. These disadvantages of bartering eventually led humans to ask, “Why do we need money?”.

In our modern world, we use a promissory note (which is just a fancy name for a bank note or a “promise to pay”) instead of swapping goats or grain. This makes trade much faster, but it is very different from the harmonious society found in traditional groups where everyone shared what they had.

To see how these activities helped people live together, you can also read about 2 ways African traditional religion contributes to a harmonious society through sharing and respect.

Grade 7 EMS: The Economy & History of Money

Here is the simplified Table of Contents for your Grade 7 EMS module:

Lesson Heading (Linked)Topic Summary
Characteristics of Traditional SocietiesCore features of ancient, self-reliant communities.
Can You Imagine a World Without Money?How ancestors thrived through sharing and nature.
Where Does Money Come From?The transition from physical goods to currency.
Exploring the Meaning of Traditional Society in 2026Why ancient values still matter in the modern world.
Advantages of BarteringThe benefits of trading goods without cash.
Why Traditional Societies Did Not Need MoneyHow survival worked through self-sufficiency.
2 Ways African Traditional Religion Contributes to HarmonyUbuntu and respect as tools for community peace.
Promissory Note 101: How Money is IssuedUnderstanding the “promise to pay” system.
Five Types of Economic Activity in Traditional SocietyHunting, farming, herding, making, and bartering.
Self-Sufficient Meaning: Living Without MarketsProviding for all basic needs independently.
Traditional Society ExamplesLessons from the San, Inuit, and Yanomami people.
Why Do We Need Money? From Bartering to CurrencyWhy swapping goods became too difficult for trade.
Disadvantages of BarteringProblems like rotting goods and double coincidence of wants.
Bartering Meaning: The Complete History GuideA deep dive into the world’s oldest trade system.
What is a Traditional Society?Full definition and evolution for Grade 7 prep.
What is Modern Society?Features of our current high-tech, money-based era.
What is Bartering? (The Tradeless Exchange)Everything you need to know about trading without cash.
Modern Society vs. Traditional Society: 7 Key DifferencesA side-by-side comparison for exam revision.

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