Explain How A $1 Bill Has All Six Characteristics Of Money?


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Connor Sephton Profile
Connor Sephton answered
The manner in which you've worded your question could actually mean a number of different things like the physical attributes of money, for example; however, I'm assuming that you mean the characteristics that define money as a common form of currency that is able to be used and recognized by all individuals within a given society, culture or subgroup.

These six characteristics or traits are found in every form of currency used by any group of people throughout history. They include:

• Durability - Our coins are made from hard and sturdy metals that hold up well over the test of time. Our paper money is actually made from a heftier, very tightly woven form of cotton paper, which also withstands years of use, in most instances.
• Uniformity - Each coin of a particular denomination is stamped at the same size and dimensions and carries the same appearance within a particular mint, ensuring it is easily identifiable and "worth" the same as other coins of its type. The same is true for each bill that is printed in a particular series.
• Portability - Money must be easily carried or transported in order to be in common use. This is the reason that countries produce coins and bills and base the value of those currencies on another form of wealth or asset, like gold bars stored in the U.S. Treasury vaults, for example. 
• Divisibility - You know that every $1.00 bill you receive is worth exact 100 pennies, four quarters, ten dimes, or twenty nickels or two fifty cent pieces. In other words, the dollar can be divided into smaller forms of currency with a consistent and standard practice and methods.
Limited Supply - The government controls the supply of money and that supply is based on how much is currently in circulation as well as the value of government controlled assets. This limited supply is what keeps the value of the money at a certain level. If there was an uncontrolled surge of money into the market, all money would become worthless - essentially no longer representing any real value or asset.
• Acceptability - We understand that our money will be accepted anywhere within our group - in this case, within the U.S., its territories and protectorates, which makes it accessible in terms of us acting as consumers. We also know that when we earn income that income translates to money, which makes it accessible to us as earners.
Karl Sagan Profile
Karl Sagan answered

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