What are the features of good money?

      

List the features of good money.

  

Answers


Raphael
(i) Portability: Should be easy and convenient to carry around.

(ii) Durability: Should be able to last for long without getting torn, defaced or losing shape and texture.

(iii) Acceptability: Must be acceptable to everyone for it to be used as a medium of exchange.

(iv) Divisibility: Should be divisible into smaller units without loss of value.

(v) Scarcity: Should be relatively limited in supply so as to maintain value.

(vi) Cognizability: Should be easy to recognize genuine from fake money.

(vii) Malleability: Should be easy to print or mint but difficult to forge.

(viii) Homogeneity: Money of the same denomination should be uniform in quality and identical.

(ix) Stability in value: Should be able to last for long time without changing in value so that it maintains credibility and acceptability.
If it fluctuates in value, people prefer holding wealth in form of goods.


raphael answered the question on August 10, 2017 at 09:18


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