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RC Passage
Direction for the questions 6 to 9: The passage below is accompanied by a set of four questions. Choose the best answer to each question.
Few realise that the government of China, governing an empire of some 60 million people during the Tang dynasty (618-907), implemented a complex financial system that recognised grain, coins and textiles as money. . . . Coins did have certain advantages: they were durable, recognisable and provided a convenient medium of exchange, especially for smaller transactions. However, there were also disadvantages. A continuing shortage of copper meant that government mints could not produce enough coins for the entire empire, to the extent that for most of the dynastyâs history, coins constituted only a tenth of the money supply. One of the main objections to calls for taxes to be paid in coin was that peasant producers who could weave cloth or grow grain - the other two major currencies of the Tang - would not be able to produce coins, and therefore would not be able to pay their taxes
As coins had advantages and disadvantages, so too did textiles. If in circulation for a long period of time, they could show signs of wear and tear. Stained, faded and torn bolts of textiles had less value than a brand new bolt. Furthermore, a full bolt had a particular value. If consumers cut textiles into smaller pieces to buy or sell something worth less than a full bolt, that, too, greatly lessened the value of the textiles. Unlike coins, textiles could not be used for small transactions; as [an official] noted, textiles could not âbe exchanged by the foot and the inchâ
But textiles had some advantages over coins. For a start, textile production was widespread and there were fewer problems with the supply of textiles. For large transactions, textiles weighed less than their equivalent in coins since a string of coins . . . could weigh as much as 4 kg. Furthermore, the dimensions of a bolt of silk held remarkably steady from the third to the tenth century: 56 cm wide and 12 m long . . . The values of different textiles were also more stable than the fluctuating values of coins
The government also required the use of textiles for large transactions. Coins, on the other hand, were better suited for smaller transactions, and possibly, given the costs of transporting coins, for a more local usage. Grain, because it rotted easily, was not used nearly as much as coins and textiles, but taxpayers were required to pay grain to the government as a share of their annual tax obligations, and official salaries were expressed in weights of grain.
In actuality, our own currency system today has some similarities even as it is changing in front of our eyes. . . . We have cash - coins for small transactions like paying for parking at a meter, and banknotes for other items; cheques and debit/credit cards for other, often larger, types of payments. At the same time, we are shifting to electronic banking and making payments online. Some young people never use cash [and] do not know how to write a cheque
RC Line-wise Explanation
Paragraph 1
"Few realise that the government of China, governing an empire of some 60 million people during the Tang dynasty (618â907), implemented a complex financial system that recognised grain, coins and textiles as money."
Explanation: Most people donât know that during the Tang dynasty in China, a large empire of 60 million people used an advanced financial system where grain, coins, and textiles were all accepted as forms of money.
"Coins did have certain advantages: they were durable, recognisable and provided a convenient medium of exchange, especially for smaller transactions."
Explanation: Coins were strong, easy to recognize, and useful for small purchases, making them a practical type of currency.
"However, there were also disadvantages."
Explanation: Despite their usefulness, coins also had drawbacks.
"A continuing shortage of copper meant that government mints could not produce enough coins for the entire empire, to the extent that for most of the dynastyâs history, coins constituted only a tenth of the money supply."
Explanation: Because copper was scarce, the government couldnât make enough coins, so coins made up only 10% of all the money used during most of the Tang dynasty.
"One of the main objections to calls for taxes to be paid in coin was that peasant producers who could weave cloth or grow grainâthe other two major currencies of the Tangâwould not be able to produce coins, and therefore would not be able to pay their taxes."
Explanation: One big problem with demanding taxes in coin was that peasants, who produced cloth or grain (other accepted forms of money), couldnât make coins, so they wouldnât be able to pay their taxes.
Paragraph 2
"As coins had advantages and disadvantages, so too did textiles."
Explanation: Just like coins, textiles had both benefits and drawbacks when used as money.
"If in circulation for a long period of time, they could show signs of wear and tear."
Explanation: Over time, textiles could become damaged or worn out.
"Stained, faded and torn bolts of textiles had less value than a brand new bolt."
Explanation: Old or damaged cloth was worth less than new, pristine cloth.
"Furthermore, a full bolt had a particular value."
Explanation: A full piece of cloth had a standard value.
"If consumers cut textiles into smaller pieces to buy or sell something worth less than a full bolt, that, too, greatly lessened the value of the textiles."
Explanation: If people cut cloth to pay for small items, its value dropped significantly.
"Unlike coins, textiles could not be used for small transactions; as [an official] noted, textiles could not 'be exchanged by the foot and the inch'"
Explanation: Textiles werenât good for small payments, because they couldnât be easily divided and valued in tiny portions like coins.
Paragraph 3
"But textiles had some advantages over coins."
Explanation: Despite their downsides, textiles also had certain benefits compared to coins.
"For a start, textile production was widespread and there were fewer problems with the supply of textiles."
Explanation: Cloth was easier to make and more readily available than coins.
"For large transactions, textiles weighed less than their equivalent in coins since a string of coins . . . could weigh as much as 4 kg."
Explanation: Textiles were much lighter than large amounts of coins, making them easier to carry for big purchases.
"Furthermore, the dimensions of a bolt of silk held remarkably steady from the third to the tenth century: 56 cm wide and 12 m long."
Explanation: The size of a silk bolt stayed very consistent for centuries, which helped ensure a stable measure of value.
"The values of different textiles were also more stable than the fluctuating values of coins."
Explanation: Cloth prices stayed steady, while coin values changed often.
Paragraph 4
"The government also required the use of textiles for large transactions."
Explanation: The Chinese government mandated that textiles be used for big payments.
"Coins, on the other hand, were better suited for smaller transactions, and possibly, given the costs of transporting coins, for a more local usage."
Explanation: Coins were more practical for small, local purchases due to their size and weight.
"Grain, because it rotted easily, was not used nearly as much as coins and textiles,"
Explanation: Grain spoiled quickly, so it wasnât used as frequently as cloth or coins.
"but taxpayers were required to pay grain to the government as a share of their annual tax obligations, and official salaries were expressed in weights of grain."
Explanation: Still, people had to give grain to the government as part of their taxes, and government workersâ pay was measured in grain amounts.
Paragraph 5
"In actuality, our own currency system today has some similarities even as it is changing in front of our eyes."
Explanation: Todayâs money system has some things in common with the Tang dynastyâs system, though it is also evolving rapidly.
"We have cash - coins for small transactions like paying for parking at a meter, and banknotes for other items; cheques and debit/credit cards for other, often larger, types of payments."
Explanation: Modern currency includes coins for minor purchases, paper money for regular use, and cards or cheques for bigger or digital transactions.
"At the same time, we are shifting to electronic banking and making payments online."
Explanation: Weâre moving toward digital payment methods like online banking.
"Some young people never use cash [and] do not know how to write a cheque."
Explanation: Many young people rely so much on digital money that theyâve never handled cash or written a cheque.
RC Paragraph Explanation
Paragraph 1 Summary
During the Tang dynasty, China used a multifaceted financial system where coins, grain, and textiles served as currency. Coins were convenient but limited by copper shortages and inaccessible to many, especially rural peasants, creating tax collection challenges.
Paragraph 2 Summary
Textiles, like coins, had limitationsâparticularly due to physical damage and difficulty in dividing them for small payments. Their inability to handle smaller transactions made them less flexible as currency.
Paragraph 3 Summary
Despite drawbacks, textiles were widely available, lighter for transporting in large transactions, and maintained consistent size and value. This made them more stable and practical than coins for certain economic uses.
Paragraph 4 Summary
The Tang government mandated textiles for big payments and coins for smaller ones, while grain was mainly used for tax and salary purposes. Grainâs perishability limited its everyday use.
Paragraph 5 Summary
Modern currency echoes ancient practices, with coins, cash, and digital options used for different transactions. The rise of electronic payments marks a shift in how people, especially youth, handle money today.
RC Quick Table Summary
| Paragraph Number | Main Idea |
|---|---|
| Paragraph 1 | Tang dynasty used coins, textiles, and grain as money, each with pros and cons. |
| Paragraph 2 | Textiles werenât suitable for small transactions due to damage and indivisibility. |
| Paragraph 3 | Textiles were more stable and portable than coins, especially for big payments. |
| Paragraph 4 | Government designated roles for each currency type; grain was used for taxes. |
| Paragraph 5 | Modern systems still reflect multi-currency logic, now moving toward digital. |
RC Questions
Ques 6. During the Tang period, which one of the following would not be an economically sound decision for a small purchase in the local market that is worth one-eighth of a bolt of cloth?
Ques 7. When discussing textiles as currency in the Tang period, the author uses the words âsteadyâ and âstableâ to indicate all of the following EXCEPT:
Ques 8. In the context of the passage, which one of the following can be inferred with regard to the use of currency during the Tang era?
Ques 9. According to the passage, the modern currency system shares all the following features with that of the Tang, EXCEPT that:
