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Qualities of Money

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Topics

  • Characteristics
  • Real-Life Application
  • Key Point Summary
Maharashtra State Board: Class 11

Characteristics

Characteristic Explanation Real-life Example
General Acceptability Accepted by everyone for buying and selling ₹ coins/notes accepted in all shops
Divisibility Can be broken into smaller units ₹100 = 2 × ₹50 or 10 × ₹10 notes
Durability Lasts long and is not easily destroyed Coins/notes used for years
Cognizability Easy to recognize and hard to fake Watermarks, Gandhi image on notes
Portability Easy to carry and move from place to place Notes/coins fit in a wallet/pocket
Homogeneity All units of same value look and work the same Every ₹50 note is identical
Stability Maintains its value over time ₹500 can buy similar things today and next week
Maharashtra State Board: Class 11

Real-Life Application

Think of money like a metro ticket—it must be accepted by all gates (acceptability), can be for one or more rides (divisibility), fits in your pocket (portability), looks the same for the same value (homogeneity), and is made to last the entire journey (durability).

Maharashtra State Board: Class 11

Key Point Summary

  • Money must be accepted by all, divided easily, long-lasting, easy to carry, easily recognised and the same in its type, and have stable value.
  • These qualities help money serve as a reliable medium of exchange and store of value over time.

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