Hi friends, in today’s article we are going to know about the characteristics of money or features of money. So let’s discuss in details.
Same Answer – What are the qualities of an ideal or good money material?
What are the Characteristics of Money?
To be able to perform the function of money well, the money should possess the following qualities or characteristics.
• General Acceptability –Material of which money is made should be acceptable to all without any hesitation. In this connection gold and silver are considered as good money material because they are readily acceptable to the general public.
• Portability – Money should be easily carried or transferred from one place to another. In different words, the money material must have large price or value in small bulk. On this ground, various animals can not be used as money.
• Durability – Money material mast last for a long time without losing its value. Eyes and foods can not become good money because they lost their value with the passage of time.
• Divisibility – Money material must be easily subdivided to all for the process of smaller units of the communities. As for example – cows can not function as good money because it can not be divided without losing its value.
• Homogeneity – Money should be homogeneous. Its units should be identical, equality and physically indistinguishable.
• Stability – The value of money should remain stable and should not change for a long period of time. The value of money is not stable, it will not be able to function as a measure of value, as a store of value and as a standard of deferred payment.
• Cognoscibility – Money should be easily recognised. If it is not easily recognisable, it would be difficult for the individuals to determine whether they are dealing with money or some inferior asset.
So friends, this was the characteristics of money or features of money. Hope you get the full details about it and hope you like this article.
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