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Class 11 · Tamil Nadu State Board

Historical Background of Commerce Exercise Solutions | KalviGavani

TN Class 11 Commerce Historical Background of Commerce exercise solutions — barter system, Sangam trade, ancient Tamil ports, medieval commerce, MCQ and long answers.

Updated 15 June 202612 min read

Historical Background of Commerce in the Sub-Continent: Exercise Solutions

How to Use This Page

1. Read the textbook chapter first — these solutions are for revision, not first-time learning. 2. Try each question on your own before checking the answer. 3. Use the Key Concepts table for a quick recap before exams. 4. Focus on Common Mistakes and the Exam Checklist — these highlight where students lose marks.


Key Concepts (Quick Recap)

TermDefinition
Barter SystemExchange of goods for goods without money; requires double coincidence of wants
NalangadiDay market in ancient Tamil Nadu, mentioned in Silapathigaram
AllangadiNight market in ancient Tamil Nadu; Madurai was called a "sleepless city"
AngadiPlace where goods were sold in ancient Tamil Nadu
VanigamTamil word for trade/commerce, found in Sangam literature like Purananuru and Thirukkural
YavanarsForeign traders (Greeks/Romans) who traded with ancient Tamil kingdoms
ArthasasthraKautilya's treatise on statecraft, economy, and trade during the Mauryan period
MaruvurappakamInland town in ancient port cities like Poompuhar
PattinapakkamCoastal town in ancient port cities like Poompuhar
PandamattruBarter system practised during the Sangam period

I. Choose the Correct Answer (MCQ)

Q1. The place where goods are sold is ……… (a) Angadi ✓ (b) Market (c) Mall (d) Exchange

Q2. Hindrance of place is removed by ……… (a) Transport ✓ (b) Warehousing (c) Insurance (d) Banking

Q3. Who wrote "Arthasasthra"? (a) Kautilya ✓ (b) Banabhatta (c) Ibn Battuta (d) Megasthanese

Q4. Trade and Commerce was common to ……… Dynasty (a) Chola (b) Chera (c) Pandiya ✓ (d) Pallava

Q5. Who was the first sultan who paved way through dense forests for traders? (a) Balban ✓ (b) Allauddin Khilji (c) Iltumish (d) Muhammad Bin Tughlaq

Q1 (Additional). ……… is part and parcel of human life. (a) Commerce ✓ (b) Trade (c) Industry (d) Transport

Q2 (Additional). Most inland trade in Sangam period used ……… as medium under barter. (a) Salt ✓ (b) Gold (c) Pepper (d) Cloth

Q3 (Additional). Commerce activities are heading for cashless system through ……… (a) e-commerce ✓ (b) barter (c) banking (d) insurance

Q4 (Additional). The night market was called ……… (a) Nalangadi (b) Angadi (c) Vanigam (d) Allangadi ✓

Q5 (Additional). Day market was called ……… (a) Nalangadi ✓ (b) Allangadi (c) Maruvurappakam (d) Pattinapakkam

Q6 (Additional). Foreigners who transacted business were known as ……… (a) Tamils (b) Telugus (c) Yavanars ✓ (d) Greeks

Q7 (Additional). Which is called a sleepless city? (a) Allangadi (b) Madurai ✓ (c) Poompuhar (d) Kanchipuram

Q8 (Additional). ……… was the first sultan who paved way in dense forest for traders. (a) Balban (b) Allauddin Khilji (c) Suleiman I ✓ (d) Iltumish

Q9 (Additional). Boats like ……… were used for crossing oceans. (a) Vangam ✓ (b) Padagu (c) Thimil (d) Ambu


II. Fill in the Blanks

1. The day market in ancient Tamil Nadu was called Nalangadi. 2. The night market in ancient Tamil Nadu was called Allangadi. 3. The barter system required double coincidence of wants. 4. Kautilya wrote the Arthasasthra, which described the Mauryan economy. 5. Foreign traders in ancient Tamil Nadu were known as Yavanars. 6. Balban was the first sultan who cleared paths through dense forests for traders. 7. The city of Madurai was called a "sleepless city" due to the Allangadi (night market). 8. Ocean-going boats used in ancient Tamil Nadu included Kalam, Marakalam, Vangam, and Navai. 9. The inland town in Poompuhar was called Maruvurappakam. 10. The coastal town in Poompuhar was called Pattinapakkam.


III. True or False (with corrections)

1.
AnswerFalse — Nalangadi was the day market, not the night market. (Allangadi was the night market.) 2. True — The barter system required double coincidence of wants. 3. False — Yavanars were foreign traders (Greeks/Romans), not a Tamil caste. (They were merchants from the Mediterranean.) 4. True — Kautilya's Arthasasthra advocated a balance between state management and people's welfare through trade. 5. False — Poompuhar had two parts: Maruvurappakam (inland) and Pattinapakkam (coastal). (They are not the same.) 6. True — Commerce activities are heading toward a cashless system through e-commerce. 7. False — Pandamattru was the barter system of the Sangam period, not a coin-based system. (It involved exchanging goods directly.) 8. True — Balban was the first sultan who paved the way through dense forests for traders.

IV. Match the Following

Column AColumn B
1. Nalangadi(d) Day market
2. Allangadi(e) Night market
3. Yavanars(a) Foreign traders
4. Arthasasthra(c) Kautilya
5. Vangam(b) Ocean-going boat

Important Definitions

TermDefinition
Barter SystemExchange of goods for goods without money; requires double coincidence of wants
NalangadiDay market in ancient Tamil Nadu
AllangadiNight market in ancient Tamil Nadu; Madurai was called "sleepless city"
AngadiPlace where goods were sold in ancient Tamil Nadu
VanigamTamil word for trade/commerce, found in Sangam literature
YavanarsForeign traders (Greeks/Romans) who traded with ancient Tamil kingdoms
JonagarArab traders who traded with ancient Tamil Nadu
PandamattruBarter system practised during the Sangam period
ArthasasthraKautilya's treatise on statecraft and economy during the Mauryan period
MaruvurappakamInland town in ancient port cities like Poompuhar
PattinapakkamCoastal town in ancient port cities like Poompuhar
Kalam/MarakalamOcean-going boats used in ancient Tamil Nadu
Padagu/ThimilRiver boats used in ancient Tamil Nadu

V. Answer Briefly (2-Mark Answers)

Q1. What is the Barter system? Goods were exchanged for goods prior to the invention of money. It required double coincidence of wants and surplus stock.

Q2. What is Nallangadi? A day market called Nalangadi, mentioned by Saint Poet Ilango in Silapathigaram, where goods were sold during daytime.

Q3. What is Allangadi? The night market called Allangadi, mentioned in Silapathigaram and Madurai-Kanchi, where trade continued after dark — Madurai was known as a "sleepless city."

Q4. What is the cashless system? Commerce activities moving toward cashless transactions through e-commerce — online trading, mobile banking, and e-marketing.

Q5. What is "Angadi"? The place where goods were sold in ancient Tamil Nadu.

Q6. Which city was called sleepless city? Madurai, due to round-the-clock business activities in the Allangadi (night market).

Q7. What did Kautilya advocate in Arthasasthra about trade? Maintaining a perfect balance between State management and people's welfare through trading activities.

Q8. What boats were used for foreign trade? Kalam, Marakalam, Vangam, and Navai were used for crossing oceans; Padagu, Thimil, Thoni, Ambu, and Odampunai were used for rivers.

Q9. Important trade centres in the 16th century? Delhi, Mumbai, Ahmedabad, Sonar, Sonargoon, Jaunpur, and Lahore.

Q10. Role of the state in trade? Two aspects: providing adequate infrastructure and maintaining administrative machinery for taxation.


Q1. Meaning of "Vanigam": The word vaniyam/vanipam likely had Dravidian origin. Early Tamils bartered surplus, leading to trade. The term 'Vanigam' appears in Sangam literature such as Purananuru and Thirukkural, referring to commercial activity.

Q2. Maruvurapakkam and Pattinapakkam: Big cities like Poompuhar had 'Maruvurappakam' (inland town) and 'Pattinapakkam' (coastal town) containing markets and bazaars where merchants gathered for buying and selling.

Q3. Role of Sangam in trade development: Sangam trade was both internal and external, initially through barter (Pandamattru). Items like honey, roots, fruits, cattle, and paddy served as exchange media. Later coins were adopted.

Q4. Ports developed by Pandiya kingdom: Tondi, Korkai, Puhar, and Muziri — busy with markets and import/export activities.

Q5. What Arthasasthra focused on about wealth creation: Kautilya described the Mauryan economy, emphasizing the state's role regarding treasury, taxation, industry, commerce, agriculture, and natural resource conservation. Wealth creation was a means to promote state well-being.

Q6. How commerce activities emerged: From the barter system into a multi-dimensional system including monetary system, mail order business, hire purchase, instalment purchase, and e-commerce.

Q7. Conditions under the Barter System: (i) Each party must have surplus stocks; (ii) Double coincidence of wants; (iii) Buyer and seller must meet personally.


VI. Answer in Detail (5-Mark Answers)

Q1. Hindrances of business: (i) Hindrance of Person — middlemen link producers and consumers; (ii) Hindrance of Place — transport brings products to consumers; (iii) Hindrance of Time — goods produced in anticipation of demand, stored via warehousing; (iv) Hindrance of risk of deterioration — packaging and storage prevent quality loss; (v) Hindrance of risk of loss — fire, theft, floods; insurance covers this; (vi) Hindrance of Knowledge — advertising informs about new products; (vii) Hindrance of Exchange — money as medium; (viii) Hindrance of Finance — producers/traders may lack funds; banking helps; (ix) Hindrance of developing exact product — R&D helps; (x) Hindrance of selection and delivery — e-commerce enables online ordering and doorstep delivery.

Q2. Constraints in barter system: (i) Lack of double coincidence of wants; (ii) Non-existence of common measure of value; (iii) Lack of direct contact between producer and consumers; (iv) Lack of surplus stock.

Q3. Development of Commerce and Trade in North India: India was prosperous during the medieval period (12th-16th centuries). Balban cleared paths through dense forests for traders. Allauddin Khilji brought prices low and encouraged foreign goods import. Arabs were dominant in foreign trade but never discouraged Indian traders (Tamils, Gujaratis). Coastal port trade handled by Marwaris and Gujaratis. Overland trade managed by Multanis (Hindus) and Khurasanis (Afghans, Iranians).

Q4. Coastal trade in ancient Tamilnadu: Coastal people engaged in coastal and intercontinental trade. Poompuhar had Maruvurappakam (inland) and Pattinapakkam (coastal) with markets. Port towns: Tondi, Korkai, Puhar, Muziri. People engaged in fishing, pearls, conches, salt production, and shipbuilding. Boats used: Padagu, Thimil, Thoni, Ambu, Odampunai (rivers); Kalam, Marakalam, Vangam, Navai (oceans).

Q5. Overseas trading partners of ancient Tamilnadu: Foreigners called Yavanars; Arabs called Jonagar. Kaveripumpattinam was the chief Chola port. Smaller east coast ports: Nagapattinam, Marakannam, Arikamedu. Pandiyas developed Korkai, Saliyur, Kayal, Marungaurpattinam, Kumari. State governments installed customs check posts along highways and ports.

Q6. Ancient Tamil country trade with Rome, China, and Europe: Roman and Greek traders forged relationships with Pandiya, Chola, and Chera kings. Cholas traded with the Chinese Song Dynasty and conquered Sri Vijaya Empire for the sea route to China. 16th-18th centuries: trade expanded through European companies. Vasco da Gama's sea route from Europe to India via Cape of Good Hope had far-reaching impact. Portuguese arrival was followed by other European communities.


Additional Fill in the Blanks

11. The word Vanigam appears in Sangam literature such as Purananuru and Thirukkural. 12. Kautilya wrote Arthasasthra, which described the Mauryan economy and state role in trade. 13. Arabs who traded with ancient Tamil Nadu were called Jonagar. 14. The chief Chola port was Kaveripumpattinam. 15. Vasco da Gama discovered the sea route from Europe to India via the Cape of Good Hope.

Additional True or False

9.
AnswerTrue — The barter system required double coincidence of wants — both parties had to want what the other offered. 10. False — Pandamattru was the barter system of the Sangam period, not a coin-based system. (It involved direct exchange of goods like honey, roots, fruits, cattle, and paddy.) 11. True — Commerce has evolved from the barter system to e-commerce, passing through monetary system, mail order business, hire purchase, and instalment purchase. 12. True — Trade and commerce were common during the Pandiya dynasty, as mentioned in Sangam literature. 13. False — Allauddin Khilji was known for bringing prices low and encouraging foreign goods import, not for clearing forest paths. (Balban was the first sultan to clear forest paths for traders.)

Common Mistakes to Avoid

1. Nalangadi vs Allangadi — Nalangadi = day market, Allangadi = night market. A common MCQ trap. 2. Barter requires double coincidence of wants — Not just "exchange of goods." Both parties must want what the other offers. 3. Yavanars — Refers to foreign traders (Greeks/Romans), not a Tamil caste or dynasty. 4. Kautilya = Chandragupta Maurya's advisor — He advocated state role in trade, not free market. 5. Poompuhar had TWO parts — Maruvurappakam (inland) and Pattinapakkam (coastal). Don't confuse them. 6. Hindrances of business — There are 10, not just 3-4. Common exam mistake is listing only transport, warehousing, and insurance. 7. Balban vs Allauddin Khilji — Balban cleared forest paths for traders; Khilji reduced prices and encouraged imports. Don't mix these up. 8. Ocean-going boats vs river boats — Kalam, Marakalam, Vangam, Navai for oceans; Padagu, Thimil, Thoni, Ambu, Odampunai for rivers. 9. Pandiya dynasty was known for trade — Not just Chola or Chera. The textbook specifically mentions Pandiya. 10. Madurai was called "sleepless city" — Because of the Allangadi (night market), not because of any other reason.

Exam Checklist

  • [ ] Can list all 10 hindrances of business with examples
  • [ ] Know Nalangadi (day) vs Allangadi (night) distinction
  • [ ] Can explain the barter system and its 4 constraints
  • [ ] Can describe coastal trade in ancient Tamil Nadu (ports, boats)
  • [ ] Know the role of Kautilya's Arthasasthra in trade
  • [ ] Can trace commerce development in North India (medieval period)
  • [ ] Know key terms: Angadi, Vanigam, Yavanars, Maruvurappakam, Pattinapakkam
  • [ ] Can describe overseas trade with Rome, China, and Europe
  • [ ] Know the difference between ocean-going and river boats
  • [ ] Can name the major ancient Tamil ports (Tondi, Korkai, Puhar, Muziri)
  • [ ] Know that Pandamattru was the Sangam barter system
  • [ ] Can explain the role of the state in trade (infrastructure + taxation)

Frequently Asked Questions

A system where goods were exchanged for goods before the invention of money, requiring double coincidence of wants.
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