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Investing and Financial Markets

Characteristics of good money?

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July 16, 2012 2:19PM

Characteristics of Good Money

1. Acceptability - Everyone must accept it to purchase goods and services

2. Durability - It should last a long time

3. Portability - Easy to carry around

4. Scarcity - Scarce enough to be valuable, not common such as sand or pebbles on a beach

5. Divisibility - Can be divided into small units

There are more as well, these are the basic

6. Cognizability

money should be easy to recognize

7. Malleability - money should be Malleable so that it could be made into new money.

8. Uniformity - It means that All version of the same denomination of currency must have the same purchasing power so that very denomination must be in uniform..