NOTE : Anything that is generally acceptable as a means of exchange for goods and services bought is money. 13 - Complete each of the following sentences: A... Ch. Our mission is to provide an online platform to help students to discuss anything and everything about Economics. It functions based on the general acceptance of its value within a governmental economy and … Durability i.e. The people accept even fiat money (money issued without keeping any metallic reserves) due to the government support. Good money requires acceptance to all without any hesitation. An important quality of money is its acceptance. kelsey_mccormick83. Malleability 7. Paper notes and modern coins of different denominations are identical in size and color; therefore they can be recognized very easily. Portability: Money must be portable. I believe, if you can adopt these qualities, it is possible you perform better in blogging than before. Money can be exchanged for goods, services and labor. If money is not recognizable by the general public then it cannot be called money. 4].Scarcity – The scarcity is the quality of good money material. Scarcity: A good money material must be scarce in quantity or the way to obtain money issued must kept low as compared to the desire for it. Test. General Acceptability: Money must be generally acceptable. It should not lose its value with the passage of time. Fluctuating standard of value is just like a changing yard or kilogram. It should be commonly acceptable for the sale and purchase of goods and services. While a deeper look at money did raise many questions, there are at least some foundational truths that can be discerned about money.. For example, many economists and experts in the field agree that money must be a medium of exchange, a unit of account, and a store … A commodity fit to be used as money must be such that it can be easily and economically transported from one place to the other. But how do we use the characteristics of money to our advantage for successful business? Money is anything that is generally acceptable as a medium of exchange, common measure, store of value, … First: Money is a store of value. If too much of money is available people will not create a value for money as everyone holds money in hand. For the paper money, it also means that it must be resistance to wear and tear for a long time. However, in economics, money is taken in a broader sense. Now the notion of money has changed. The characteristics of money are durability, portability, divisibility, uniformity, limited supply, and acceptability. Gold and silver are generally acceptable to all without any hesitation because they are used for ornamental and other purposes and can be easily sold as bullion, besides being used for monetary purposes. What is money? Properties/Qualities/Merits of Good Money: The commodity which is to serve as money should have following properties or qualities: (1) General Acceptability: The most important property of money is this that it should be generally acceptable. In order for something to qualify as money, then it should have the following qualities or features: Divisibility. Communicability is an essential quality of good money. It should be neither too hard nor too soft. Welcome to EconomicsDiscussion.net! It is possible only if the various units of money are identical. Indestructibility or Durability 4. 5 Qualities of a Blog That Makes Money June 9, 2020 by Kai Magsanoc In April 2020, the International Monetary Fund (IMF) declared that the world economy will go into recession, “the worst since the Great Depression” from 1929 to 1933. Malleability 7. Top eight qualities of an ideal money material are: 1. The cost of printing currency notes and minting coins must be lower. It will cease to be current. What are the characteristics … The precious metals, gold and silver by and large, possess the above mentioned qualities of good money material. Because of this feature of money, it makes it pretty easy for many to identify counterfeit currency. 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. Qualities of Good Money. people can carry it around with them on a daily basis. PROTECT YOURSELF, and do it NOW! Paper money has this quality of store-ability. Conclusion:- After discussing the essential qualities of a good money material, we find that so far not a single commodity has been … A thousand rupee note can be changed into the notes of small denominations. The six characteristics of money are durability, portability, acceptability, limited supply, divisibility and uniformity. In fact, holding money is a more effective way of storing value than … Durability means that dollar bills or coins are easily replaceable should they become damaged. Indestructibility or Durability 4. They've found that people who are good with money are generally goal-driven, value-driven, accountable, and efficient. Therefore, people must have confidence in, and be ready to accept it as a medium of exchange. Money is a liquid asset used in the settlement of transactions. If people lose confidence in money and refuse to accept it in payments, it will not work as money any further. it can be broken down into smaller denominations; Hard to counterfeit - i.e. It should also possess the attribute of impressionability so that it may easily receive the impressions. Home Depot draws fire after co-founder backs Trump. However, changes in the quality of money have been widely neglected. Money is primarily a current medium exchange, for a person to buy goods and services from other person in the form of coins and banknotes (Freeman, 2012). If we use diamond as money and by chance it drops from our hand and breaks, we will suffer an enormous loss. Good money is that whose value is fairly stable. Money is easily divisible. Good money is that which is durable and long lasting. Money should not be subject to fluctuations in value. Everyone must find it very easy to recognize it and know its value. The value of money should not depreciate with the passage of time. Harris explained these qualities with remarkable clearness in […] Before publishing your Articles on this site, please read the following pages: 1. 13 - Most economists believe that the better fiat money... Ch. Gravity. Anything, which is acceptable in a certain payment but not generally acceptable, cannot/be regard as good money. Portability It is possible only if the various units of money are identical. It practically happened in Kuwait during the gulf war, when people refused to accept Kuwaiti Dinars in payments. Infographic: The Properties of Money. Disclaimer Copyright, Share Your Knowledge Money must be limited in supply as compare to demand for it. General Acceptability 2. Characteristics of Money and Inflation & Deflation Characteristics of Money. Cognizability 8. The value of money should not depreciate with the passage of time. Money serves as a store of value, a unit of account and as a medium of exchange. Ch. Money is a medium of exchange; it allows people to obtain what they need to live. 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. 13 - What are six qualities of the ideal money? Stability of Value! This is not the case with precious metals. 13 - Discuss the various ways in which London... Ch. Scarcity: A good money material must be scarce in quantity or the way to obtain money issued must kept low as compared to the desire for it. Homogeneity 5. Volume 12, Number 4 (2009) Much has been written about the quantity of money and its effects on money’s purchasing power. Another quality of good money is that it should be capable of making small purchases. ONLY PHYSICAL gold and silver are money, and shortly ALL seven billion of the world’s citizens will be painfully aware of this historical FACT. Gold and silver coins are more durable as compared to paper money. Here are some important qualities of good money: General Acceptability. PLAY. The main quality of good money is its general acceptability. Reason is that when you have more than one person’s success secrets, you have edges over those who don’t. Paper money possesses this quality. Divisibility 6. Their portions can be melted and remelted together any number of times without much loss. It enables a person to make small purchases. The six essential qualities of ideal money are durability, portability, divisibility, uniformity, limited supply, and acceptability. 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. If I work today and earn 25 dollars, I can hold on to the money before I spend it because it will hold its value until tomorrow, next week, or even next year. This paper analyzes changes in the quality of money and its influence on the purchasing power of money. High Value: The money material should possess high value in small bulk, so that it can be conveniently carried and handled. When sand and stones were used as money people had less value for money as everyone was … Money has all the characteristics below. it needs to last; Portable i.e. In the case of oxen and grain, a small value occupies a large bulk and weight; hence, they are unsuited as money commodity. Durability: Money should be durable. If the former, it cannot be easily coined; If the latter, it would not last long. It is possible only if it contains huge value in small bulk. Share Your PPT File, Changes in Money Supply: it’s Meaning and Determinants. Top eight qualities of an ideal money material are: 1. It should have certain distinct marks which nobody can mistake. Created by. Only a few textbook authors (Colander 1995 and Sloman 1994) mention qualities of money while Melotte and Moore (1995) claim that a good money must be divisible, portable, durable, and stable in value. The value of a material, which is used to measure the value of all the other materials, must be stable. Money is recognizable. The main characteristics of money are durability, divisibility, portability, acceptability, limited supply and uniformity. Money acts as a unit of account, a medium of exchange and a store of value. The money system cannot last for a longer period if it is too much costly. ITunes is one of the greatest benefits obtained when…, Money Market: Definition, Function, Characteristics,…, Text of the Exemplum (Definition, Characteristics,…, 6 Stages of History And Evolution of Money. 13 - What are three functions of money? 4 Comments. Good money requires acceptance to all without any hesitation. TOS4. Since the law declares Money as the legal tender, it … Humanity doesn’t seek second best as money (example: copper maybe, not rare enough) they always seek what works the … In order to possess general acceptability, a commodity should have some intrinsic utility independent of its value for monetary purpose. Share Your PDF File All portions or specimens of the substance used as money should be homogeneous, that is, of the same quality, so that equal weights have exactly the same value. STUDY. This quality of money will encourage savings and investment. New York, Pageant Press  (DLC) 56008704 (OCoLC)1154146: Material Type: Document, Internet resource: Document Type: Internet Resource, Computer File: All Authors / Contributors: Arthur Kemp 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. Ch. It is possible only if the money is divisible into small units. An ordinary person should be able to judge the correctness of money. Cognizability 8. 1. This is one of the easiest ejections a ref will ever make. What are the characteristics of money or the qualities of good money? And this implementation has a vital role in the business environment. 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. So, here is how to become a successful blogger and make money in Nigeria or any other part of the world: Be a better blogger 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. it can’t easily be faked or copied; Must be generally accepted by a population; Valuable – generally holds value over time 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. If the money used is perishable it will lose its value in few days. This quality of money makes best use of money possible. Key Characteristics of Money. This quality of money will encourage savings and investment. As a medium of exchange, money has to be continually handed about; and it will cause great inconvenience if every person receiving it has to scrutinise, weigh and test it. After deputies kill Black man, Vancouver, Wash., erupts But in a modern business environment, you can’t always rely on cash, so you have to look for online ways of transacting with your money. Durability is one of the most important qualities of money. An ordinary person should be able to judge the correctness of money. 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. In other words, it must possess high value in small bulk. How money originates Money is a commodity that is mainly used to obtain other goods; It must originate in free-market by the free choice of people; It must be valued and demanded as a good.
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