What are the 7 characteristics of good money?
What are the 7 characteristics of money?
The qualities of good money are: Read also : How can I look expensive and classy?.
- General acceptability.
- Portability.
- Durability.
- Divisibility.
- Homogeneity.
- knowability.
- Stability.
What are the four main characteristics of money? In general, there are four main characteristics that money must fulfill: durability, divisibility, transportability and impossibility of counterfeiting.
What is good money in economics?
Meanwhile, good money is a currency that is believed to have greater intrinsic value or more potential for a value greater than its face value. This may interest you : How can we improve financial health in 2022?. A basic assumption for the concept is that both currencies are treated as generally acceptable mediums of exchange, are readily liquid and available for simultaneous use.
What makes good money? Of all the qualities of good money, stability is probably the most essential. The value of money cannot change over a long period of time and therefore remains stable. If the value of money continues to change, it will cease to function as a measure of value and a standard of deferred payment.