Characteristics of Money by Brian Chub

Portability

chubbrian — 2024-10-29 14:41:28 UTC

Money must be easily moved around. Large or bulky items, such as boulders or heavy gold bars, cannot be transported easily from place to place.

EX: Money needs to be small enough so it can be conveniently carried in clothes, pockets, or purses.

Divisibility

chubbrian — 2024-10-29 14:51:01 UTC

Divisibility: Money must be capable of being divided into smaller parts. Divisible forms of money help make transactions of all sizes and amounts possible.

EX: Money must be made in various units.

Durability

chubbrian — 2024-10-29 18:43:13 UTC

If money stays the same in terms of shape and substance over time, it is said to be durable. This means that it does not easily change form and can be used for a long period of time.

EX: The money must be able to sustain its value over time.

Acceptability

chubbrian — 2024-10-29 18:45:13 UTC

This means that money is widely accepted as a method of payment across various countries.

EX: In another country such as Mexico will accept Belizean currency as a form of payment.

Uniformity

chubbrian — 2024-10-29 18:49:40 UTC

Uniformity in currency means that each individual unit holds the same value.

EX: Twenty-dollar bills are all the same size and shape and value; they are very uniform.

Limited Supply

chubbrian — 2024-10-29 18:55:26 UTC

In order to maintain its value, money must have a limited supply.

EX: The supply, and therefore the value, of 20-dollar bills and money in general are regulated by the Federal Reserve so that the money retains its value over time.