Question

What are the main features of money?

Give the features of money.

Describe principle features of money.

Answer 1

1. General Acceptability: For a thing to serve as money, it must possess the quality of general acceptability. It should be accepted by people freely in exchange for goods and services.
2. Divisibility: Money should be easily divisible into smaller parts and thus must facilitate small transactions.
3. Durability: Money should be durable so that it lasts long and can be stored.
4. Cognisability: Money should be easily recognised. It should have certain distinct marks so as to avoid mistake by the receiving person.
5. Portability: Money must be portable one so that it can be transferred easily from one place to another at a lot.
6. Homogeneity: Various units of money must be homogeneous in quality. There should not be any difference between the various units of money.
7. Stability: Money should be stable in value because it has to serve as a measure of value.