The characteristics of money can be divided into six different categories: Durability, portability, divisibility, uniformity, limited supply, and acceptability. With the ongoing fraudulent issues associated with counterfeit money, it is important to be familiar with these categories.
Acceptability: In terms of a form of currency being accepted within society, money must be accepted by everyone in the economy. This acceptance is for the purpose of the exchange of money for goods and different types of services.
Divisibility: This relates to money being easily divided into smaller denominations for transactional purposes. People will only need as much money as is necessary for their purchases, therefore it is necessary for money to be easily broken down for different types of transactions.
Durability: This simply refers to the physical wear and use of money over a period of time. If some money is easily destroyed or damaged it is likely that it is fraudulent and therefore cannot be trusted. Yet, money is made from a paper source, so some wear and tear must be expected.
Limited supply: In order for money to retain its worth, there must be a type of limited supply. The more money that is in circulation the less it is valued by the economy.
Portability: Quite simply it is necessary for money to be easily transported so that people can carry it around with them on a daily basis. This also allows for the ease of transaction so that money can be transferred from one place to another.
Uniformity: Depending on the different types of currency that are available, money within that specific currency must look the same. This also allows for money to be counted and measured accurately.
An alternative way for distinguishing the characteristics of money is that it is easily recognized. Money is subject to the type of currency that is in circulation within a specific place, so if it is easily recognized and it follows the above characteristics, then it is likely to be genuine.
The characteristics of money are:
1. General Acceptability
5. Homogeneity or Uniformity
The essential attributes of good money are:
General acceptability:The essential quality of a good money material is that it would acceptable to all without any hesitation in exchange for goods and services.
Stability of value:
Another very important attribute of a good money material is that it should be fairly stable in value. If the commodity chosen as money is subject to violent fluctuations, then that is useless money. Money is the standard by which we measure the value of all other commodities and if the standard itself is influenced by changes in its demand and supply, then how it can serve as perfect money.
The commodity chosen should be easily transportable without any depreciation. It should have a large value in small bulk.
Another requisite of good money material is that it should be storable without depreciation. If the commodity chosen as money is perishable, then that cannot as good money.
Divisibility:The commodity chosen as money should be capable of being re united without losing its value.
Homogeneity:The commodity selected as money should be of a uniform quality and capable of standardization.
Congizability:One very essential condition of perfect money is that it should be easily recognizable by the aye, ear or the touch.
Characteristics of Money
The 6 characteristics are
Stable in value
Good money must have all of the following qualities:
Acceptability: it should be acceptable to anyone during the exchange of goods and services otherwise no transaction can take place.
Uniformity: it should be uniform which means that all notes of the same amount should be standard ressembling to one another thus facilitating payment.
Cognisability: the material or substance used as money should be easily recognised by people so as to be an efficient type of money.
Difficult to counterfeit: money used should be difficult to imitate otherwise it will have less value.
Scarcity(limited in supply): money should be made of a material which is neither too plentiful otherwise it will have no value nor should it be too scarce; the material used should be relatively scarce.
acceptability 2 accountability 3 durability 4 scarcity 5 divisibility 6 potability
Well I was taught that there were 7 characteristics of money.
Limited in Quantity
Uniform in Quality
They are all pretty much self explanatory.
Easliy recognised money ios money that is easily recognised. For eg: Some people cheat buy using bits of metal and stuff to form coins! Which look like money!!. But now there is a new policy so even if someone cheats we can easily know...=)=)...so thats EASILY RECOGNISED MONEY!!!
Rate me as good because I hav given you all the info!!!!!
Basically, money (as in coinage and dollars) is the expression of value and worth used as a means of exchange. It may take any physical form, such as metal (precious or not), paper, etc. Often money in this physical form is an item that is rare or in limited supply giving the money the illusion worth.
Any item produced by a government considered acceptable legal tender by the general public, and usually backed by a reserve of gold bullion.
Money is just a thing by which you can buy or exchange another thing, which you needed.
Find the characteristics of money