Answer: Money as a medium of exchange is the most important characteristic of money, which will ensure its perpetual use.
Which of the following is the most important characteristic of an effective money?
In general, there are four main characteristics that money should fulfill: durability, divisibility, transportability, and inability to counterfeit.
What are the 4 main characteristics of an item that is considered money?
MONEY CHARACTERISTICS: The four primary characteristics of money are: (1) durability, (2) divisibility, (3) transportability, and (4) noncounterfeitability.
What are 3 characteristics of money?
The characteristics of money are durability, portability, divisibility, uniformity, limited supply, and acceptability.
What are the characteristics of a piece of money?
17 Answers. The characteristics of money can be divided into six different categories: Durability, portability, divisibility, uniformity, limited supply, and acceptability. With the ongoing fraudulent issues associated with counterfeit money, it is important to be familiar with these categories.
Which is the most important function of money?
This definition covers all the three important functions of money and also stresses its basic characteristic, namely general acceptability. Legal tender money is issued by the monetary authority of a country. It has legal sanction of the Government.
What are the characteristics of a divisible currency?
By divisible we mean that money is capable of being divided into smaller denominations. Money is durable. By being durable, money does not easily wear out or deteriorate. Money is recognizable.
Do you have a good definition of money?
To serve as money, the definition of money should be comprehensive enough to cover all the essential functions that money performs in the economy. Before we arrive at the most suitable definition, it is essential to study a few definitions of money as given by some eminent economists.
