Question

 

 

We are told that economy is growing and that such growth benefits all of us. However, what you see is not what you always get. Most people are experiencing declining economic security in response to the problems of the global system. Thus, many communities have turned to Local Exchange Systems (LESs) to help regain some control over their economic situations.

 

Local exchange systems (LESs) come in many forms. They often involve the creation of a local currency, or a system of bartering labour, or trading of agricultural products as a means of supporting the region in which they are traded. Such a system helps preserve the viability of local economies. Local currencies allow communities to diversify their economies, reinvest resources back into their region and reduce dependence on the highly concentrated and unstable global economy. Each local currency system serves as an exchange bank for skills and resources that individuals in the community are willing to trade. Whether in the form of paper money, service credits, or other units, a local currency facilitates the exchange of services and resources among the members of a community.

 

By providing incentives for local trade, communities help their small businesses and reduce under-employment by providing the jobs within the community. In addition, the local exchange of food and seeds promotes environmental conservation and community food security. Local food production reduces wasteful transportation and promotes self-reliance and genetic diversity. Each transaction within a local exchange system strengthens the community fabric as neighbours interact and meet one another.

 

There are over 1,000 local exchange programs worldwide more than 30 local paper currencies in North America and at least 800 Local Exchange Trading Systems (LETS) throughout Europe. New Zealand and Australia Local Exchange Systems vary and evolve in accordance with the needs and circumstances of the local area. This diversity is critical to the success of the local currencies. For instance, a bank in rural Massachusetts refused to lend a farmer the money needed to make it through the winter. In response, the farmer decided to print his own money Berkshire Farm Preserve Notes. In winter, customers buy the notes for $9 and they may redeem them in the summer for $10 worth of vegetables. The system enabled the community to help a farm family after being abandoned by the centralised monetary system. As small family farms continue to disappear at an alarming rate, local currencies provide tools for communities to bind together, support their local food growers and maintain their local food suppliers.

 

Local Exchange Systems are not limited to developed countries. Rural areas of Asia, Latin America and Africa have offered some of the most effective and important programs, by adopting agriculture-based systems of exchange rather than monetary ones in order to preserve genetic diversity, economic security and independence.

 

Industrial seed and chemical companies have a similar role. Many villages have developed seed saving exchange banks. For example, women in Ladakh village have begun to collect and exchange rare seeds selected for their ability to grow in a harsh mountain climate. This exchange system protects agriculture diversity while promoting self-reliance.

 

There is no one blueprint for a local exchange system, which is exactly why they are successful vehicles for localisation and sustainability. They promote local economic diversity and regional self-reliance while responding to a region’s specific needs. Local exchange systems play a pivotal role in creating models for sustainable societies. They are an effective educational too, raising awareness about the global financial system and local economic matters. Local exchange systems also demonstrate that tangible, creative solutions exist and that communities can empower themselves to address global problems.

 

 

1. Which of the following can be a suitable title for the passage? (1 point)

 

(a) Reasons LES must rule over the regular currency

 

(b) Methods to escape global economic issues

 

(c) Dependence of Asian countries on LES

 

(d) Role of LES in development of communities

 

(e) LES – A Futile Exercise

 

2. Which of the following is most nearly the OPPOSITE in meaning to the word REGAIN as used in the passage? (1 point)

 

(a) recover

 

(b) restart

 

(c) forfeit

 

(d) revalue

 

(e) liberate

 

 

3. Which of the following is the most appropriate definition of the word VIABILITY as used in the passage? (1 point)

(a) The act of causing worry and fear.

 

(b) The ability to continue or be continued for a long time.

 

(c) The thing that can be clearly seen to exist or can be touched and felt.

 

(d) The fact that something can be done and can be successful.

 

(e) The act of withdrawing support or help.

 

 

4. Which of the following is most nearly the OPPOSITE in meaning to the word BIND as used in the passage? (1 point)

(a) visionless

 

(b) separate

 

(c) associate

 

(d) loosen

 

(e) reunite

 

 

5. As mentioned in the passage, there is no set design to initiate local exchange systems as ___________. (1 point)

 

(a) they tend to work well only in select countries

 

(b) they are region specific

 

(c) They are too complicated to understand

 

 

6. As mentioned in the passage, local currencies can prove to be beneficial for the community as they ___________. (1 point)

 

(a) assist in creating job opportunities

 

(b) indirectly help in conserving the environment.

 

(c) aid in minimising reliance on global economy.

 

(d) all of the above

 

 

7. Which of the following is SAME in meaning as the word LIMITED TO as used in the passage? (1 point)

 

(a) restricted to

(b) extending beyond

(c) validated for

(d) adjusted

(e) custodial

 

8. Which of the following is the most appropriate definition of the word SUSTAINABILITY as used in the passage? (1 point)

 

(a) The act of causing worry and fear.

 

(b) The ability to continue or be continued for a long time.

 

(c) The thing that can be clearly seen to exist or can be touched and felt.

 

(d) The fact that something can be done and can be successful.

 

(e) The act of withdrawing support or help.

 

 

9. Which of the following is most nearly the OPPOSITE in meaning to the word PIVOTAL as used in the passage? (1 point)

 

(a) essential

 

(b) unnourished

 

(c) healthy

 

(d) overriding

 

(e) trivial

 

 

10. Decide if each of the following statements is true or false as per the context of the given article justifying your answer with evidence from the text.​(4 points)

 

(a) LES work well only in countries whose economies are based primarily on agriculture. ( )

__________________________________________________________________________________________________________________________________________

 

 

(b) LES increase unhealthy competition between communities from different regions. ( )

__________________________________________________________________________________________________________________________________________

 

 

(c) LESs encourage communities to become self-supporting. ( )

__________________________________________________________________________________________________________________________________________

 

 

(d) LESs are restricted to trading with paper money only. ( )

__________________________________________________________________________________________________________________________________________

 

​

 

11. Which of the following is the meaning of the phrase ‘what you see is not what you always get’ as mentioned in the passage with respect to the present economic situation? (1 point)

 

(a) Sharing information without hiding facts.

 

(b) Being pessimistic while presenting information.

 

(c) Modifying information after taking consent from every stakeholder.

 

(d) Waiting to share positive information.

 

(e) What is presented may not necessarily be true.

 

 

12. As mentioned in the passage, the statistics with respect to LES highlight that__________. (1 point)

 

(a) very few countries are aware about such programmes

 

(b) they face more resistance from, developed countries than developing ones.

 

(c) they are becoming popular among communities across the globe.

 

(d) they lack support of farmers.

 

(e) the gap between the rich and the poor is increasing.

 

 

Answer 1

Answer 1 : LES is one method to reduce the a contry wise and global economic issues. This method is prersent in all major countries of the world.
option b : Methods to escape global economic issues

Answer 2 : option c : forfiet - lost or surrendered as a penalty for wrongdoing

Answer 3 : option (d) The fact that something can be done and can be successful

Answer 4 : Bind = collect together so the opposite will be option b - separate.

Answer 5 :   As mentioned in the passage, there is no set design to initiate local exchange systems as -  

(b) they are region specific

Answer 6 : (d) all of the above

Answer 7 : (c) validated for

Answer 8 :  (b) The ability to continue or be continued for a long time.

Answer 9 :  (e) trivial

Answer 10:
a. False : Local exchange systems (LESs) come in many forms. They often involve the creation of a local currency, or a system of bartering labour, or trading of agricultural products as a means of supporting the region in which they are traded.
b. False : LES, Local currencies allow communities to diversify their economies, reinvest resources back into their region and reduce dependence on the highly concentrated and unstable global economy.
c. True :  In addition, the local exchange of food and seeds promotes environmental conservation and community food security. Local food production reduces wasteful transportation and promotes self-reliance and genetic diversity.
d. False : They often involve the creation of a local currency, or a system of bartering labour, or trading of agricultural products as a means of supporting the region in which they are traded.

Answer 11 : (b) Being pessimistic while presenting information.

Answer 12 : (c) they are becoming popular among communities across the globe.