The Indus Valley Civilization flourished under which economy?
Show answer & explanation
Correct answer: A
Explanation
Correct Answer
Barter system
Explanation
The Indus Valley Civilization (IVC) flourished primarily under a highly organized Barter system. Despite their advanced urban planning and extensive trade networks, there is no archaeological evidence to suggest that the people of the Indus Valley used coins or any form of metallic currency. Instead, transactions and commerce—both internal and international—were conducted by exchanging goods directly, strictly regulated by a sophisticated and standardized system of weights and measures.
Key Points
Commerce in the Indus Valley relied on a barter network where agricultural surplus (like wheat and barley) and manufactured goods were exchanged.
To facilitate fair trade without currency, they developed an extremely precise weight system based on the binary and decimal systems, utilizing carefully carved cubical chert weights.
The civilization carried out extensive maritime and overland trade with contemporary foreign civilizations, most notably Mesopotamia (Sumer), Bahrain, and Oman.
Additional Facts
Cylinder seals from the Indus Valley have been discovered in Mesopotamian cities like Ur and Kish, proving deep commercial ties; Mesopotamian texts refer to the Indus region as 'Meluhha.'
Major trading and manufacturing centers within the civilization included Lothal (a prominent dockyard city in Gujarat) and Chanhudaro, which was famous for bead-making.
The main items of export included cotton textiles, beads, ivory goods, pottery, and timber, while they imported precious stones and metals like copper, tin, and lapis lazuli.
Important Questions
Question: Which coastal site of the Indus Valley Civilization is widely known for possessing a massive artificial dockyard used for maritime trade?
Answer: Lothal (located in Gujarat, India).
Question: What was the ancient Mesopotamian name used in cuneiform inscriptions to refer to the Indus Valley region?
Answer: Meluhha.