Question

State with reason whether you Agree or Disagree with the following statement:

There are many good qualities founds in modern currency.

Answer 1

Yes, I agree with this statement.

Reasons: 

Definitions of Money:

1. Prof Crowther: “Money is anything that is generally acceptable as a means of exchange and at the same time gets as a measure and a store of value.”
2. Prof Walker: “Money is what money does.”

The qualities of money are as follows:

1. General Acceptability: Anything which is used as money must be easily accepted by all for exchange purpose.
2. Divisibility: Money should be easily divisible into smaller denominations to facilitate small transactions.
3. Durability: Money should also possess the characteristic of durability. Currency notes and coins are being used repeatedly and shall continue to do so for years together on account of their durability.
4. Cognizability: Money must be easily recognised. It should have certain distinct marks so as to avoid confusion by the receiving person.
5. Portability: It should be easy to carry from one place to another without any difficulty, expense and inconvenience, e.g. currency notes are easily portable.
6. Homogeneity: Money of a particular denomination must be homogeneous or identical in its features.
7.  Stability: Money should have (1 stable monetary value. It serves as a measure of value to exchange goods and services. These goods can be sold and purchased in future as per requirements.