A chord is defined by a line segment connecting any two distinct points on the circle. To find the number of chords, we need to find the number of ways to choose 2 points out of the 7 given points. Using the combination formula nC2 = (n(n-1))/2, we calculate 7C2 = (7 * 6) / 2 = 21. Therefore, 21 chords can be drawn.