qualities of money

Characteristics Of Money is very important subject for any business students.Any type of money may be considered as good money due to certain qualities. Durability i.e. Since the law declares Money as the legal tender, it … If too much of money is available people will not create a value for money as everyone holds money in hand. Qualities of Good Money. The money material should be capable of division; and the aggregate value of the mass after division should be almost exactly the same as before. Money must be limited in supply as compare to demand for it. What are the characteristics … There are a lot of characteristics of money, but economic science determines six basic properties. Communicability:- Communicability is an essential quality of good money. Home Depot draws fire after co-founder backs Trump. It is possible only if the various units of money are identical. And this implementation has a vital role in the business environment. Following are the qualities of good money: General acceptance The essential quality of good money is that it should be acceptable to all, without any hesitation in the exchange for goods and services. Qualities of Good Money. Food, water, copper, salt, real estate, anything that has value. One of the qualities of a good money material is that it can be stored for a longer period of time without loosing value to meet the future needs. Qualities of the Material of Money Chapter V Many recent writers, such as Huskisson, MacCulloch, James Mill, Garnier, Chevalier, and Walras, have satisfactorily described the qualities which should be possessed by the material of money. For the paper money, it also means that it must be resistance to wear and tear for a long time. In order for something to qualify as money, then it should have the following qualities or features: Divisibility. Learn. When money is divisible into small units, the consumer will get maximum satisfaction with his limited income by equating the marginal utility of all the purchased commodities. PLAY. Our mission is to provide an online platform to help students to discuss anything and everything about Economics. Durability: Money should be durable. It means money must be a thing of continued use. After deputies kill Black man, Vancouver, Wash., erupts An ideal money material should possess the following qualities: 1. Privacy Policy3. The qualities of good Money, are as under. Commentdocument.getElementById("comment").setAttribute( "id", "ad57099b9e1279cf3466eba2a3070b31" );document.getElementById("bb9a5a46ca").setAttribute( "id", "comment" ); Save my name, email, and website in this browser for the next time I comment. Therefore, people must have confidence in, and be ready to accept it as a medium of exchange. Because of this feature of money, it makes it pretty easy for many to identify counterfeit currency. Unless a person knows that the money which he accepts in exchange for his goods or services will be taken without any objection by others as well, he will not accept it. This quality of money will encourage savings and investment. Destructible articles, such as eggs, dried cod fish, cattle or oil has certainly been used as currency; but what is treated as money one day must not soon afterwards be eaten up.” Gold coins are very lasting; they take about 8,000 years to wear out completely. One of the qualities of a good money material is that it can be stored for a longer period of time without loosing value to meet the future needs. Paper notes and modern coins of different denominations are identical in size and color; therefore they can be recognized very easily. Everything on earth lacks at least one or several attributes, so theyre disqualified for the job of money that humanity seeks. Gold and silver coins are more durable as compared to paper money. Welcome to EconomicsDiscussion.net! 13 - Discuss the various ways in which London... Ch. General Acceptability: The government's backing to money creates a sense of confidence. This quality of money makes best use of money possible. Money is easily divisible. it needs to last; Portable i.e. TOS4. It should not deteriorate rapidly with the passage of time. Legal qualities of money. Good money requires acceptance to all without any hesitation. Test. Indestructibility or Durability 4. It is possible only if it contains huge value in small bulk. Frequent changes in the value of money will inject the element of instability in economy and people lose confidence in it.Moreover, money is a standard for measuring the values of other goods and services. Malleability 7. Money is a liquid asset used in the settlement of transactions. easy to carry around, convenient, easy to use; Divisible i.e. Economical: The good money material has economical quality. Fluctuating standard of value is just like a changing yard or kilogram. This website includes study notes, research papers, essays, articles and other allied information submitted by visitors like YOU. Harris explained these qualities with remarkable clearness in […] This paper analyzes changes in the quality of money and its influence on the purchasing power of money. In the case of oxen and grain, a small value occupies a large bulk and weight; hence, they are unsuited as money commodity. Characteristics of Money What qualities a commodity must have to become used as money 2. If we use diamond as money and by chance it drops from our hand and breaks, we will suffer an enormous loss. If its own value is not stable, how can it measure the values of other goods properly?

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