Any commodity which lacks this quality can not be accorded as money. Ch. Money must be able to be easily divided into smaller units or denominations in … Ch. New York, Pageant Press  (DLC) 56008704 (OCoLC)1154146: Material Type: Document, Internet resource: Document Type: Internet Resource, Computer File: All Authors / Contributors: Arthur Kemp Characteristics of Money and Inflation & Deflation Characteristics of Money. Earlier writers seem, however, to have understood the subject almost as well. What are the characteristics of money or the qualities of good money? Their portions can be melted and remelted together any number of times without much loss. 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. This quality of money will encourage savings and investment. This quality of money will encourage savings and investment. The essential quality of good money is that it should be acceptable to all, without any hesitation in the exchange for goods and services. Paper money possesses this quality. However, in economics, money is taken in a broader sense. In other words, it must possess high value in small bulk. Share Your Word File
Money is a powerful tool if you know how to use it. Qualities of Good Money. Money serves as a store of value, a unit of account and as a medium of exchange. 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. Qualities of Good Money. It practically happened in Kuwait during the gulf war, when people refused to accept Kuwaiti Dinars in payments. General Acceptability: Indestructibility or Durability 4. 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. What is money? William E. Beers on April 2, 2012 at 8:05 am Andy. Anything, which is acceptable in a certain payment but not generally acceptable, cannot/be regard as good money. In simple terms, money refers to the currency that consists of notes and coins. The money system cannot last for a longer period if it is too much costly. The people accept even fiat money (money issued without keeping any metallic reserves) due to the government support. Paper money is considered good money as it can be shifted easily from one place to another. An ordinary person should be able to judge the correctness of money. Gravity. Silver coins are not equally lasting but wear out fairly slowly. This quality of money makes best use of money possible. Money is easily divisible. Conclusion:- After discussing the essential qualities of a good money material, we find that so far not a single commodity has been … Write. General Acceptability: Money must be generally acceptable. It should be commonly acceptable for the sale and purchase of goods and services. The money material should be capable of division; and the aggregate value of the mass after division should be almost exactly the same as before. The value of money should not depreciate with the passage of time. The standard unit of money must be blank into smaller units to accommodate small/large purchases (pennies, nickels, dimes, quarters, etc.) This is one of the easiest ejections a ref will ever make. Gold and silver are of the same quality throughout; their various parts are similar in chemical and physical composition and their consistency is the same throughout the mass. It means money must be a thing of continued use. If too much of money is available people will not create a value for money as everyone holds money in hand. The most important requirement here is for that material (money) to … “It must not evaporate like alcohol, nor purely like animal substance, nor decay like wood, nor rust like iron. . 1. There are a lot of characteristics of money, but economic science determines six basic properties. Cognizability 8. Money can be defined as anything that is used and accepted by the general public as a medium of exchange and for the payment of goods and services. 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. 13 - What are six qualities of the ideal money? As money is passed from hand to hand and is kept in reserve, it must not easily deteriorate, either in itself or as a result of wear and tear. Reason is that when you have more than one person’s success secrets, you have edges over those who don’t. It functions based on the general acceptance of its value within a governmental economy and … It is possible only if the various units of money are identical. The textbook by Abel, Bernanke, and Croushore (2008) does not even discuss the qualities of money at all. Money is a medium of exchange; it allows people to obtain what they need to live. Money is homogenous. Content Guidelines 2. This website includes study notes, research papers, essays, articles and other allied information submitted by visitors like YOU. It enables a person to make small purchases. 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. 13 - Complete each of the following sentences: A... Ch. Precious metals possess this quality. It should not lose its value with the passage of time. Homogeneity 5. Money has to be limited in supply yo generate a value for it. Paper notes and modern coins of different denominations are identical in size and color; therefore they can be recognized very easily. Flashcards. It should not deteriorate rapidly with the passage of time. Home Depot draws fire after co-founder backs Trump. Disclaimer Copyright, Share Your Knowledge
Money is a liquid asset used in the settlement of transactions. Harris explained these qualities with remarkable clearness in […] TOS4. It is a common myth that traditional economies usually functioned on a system of barter such that goods were directly exchanged. The six characteristics of money are durability, portability, acceptability, limited supply, divisibility and uniformity. Money has all the characteristics below. Since the law declares Money as the legal tender, it … First and foremost, money acts as a medium of exchange that facilitates commercial transactions. Good money requires acceptance to all without any hesitation. Welcome to EconomicsDiscussion.net! High Value: The money material should possess high value in small bulk, so that it can be conveniently carried and handled. 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. General Acceptability 2. If its own value is not stable, how can it measure the values of other goods properly? First: Money is a store of value. Paper money has this quality of store-ability. I believe, if you can adopt these qualities, it is possible you perform better in blogging than before. If we use diamond as money and by chance it drops from our hand and breaks, we will suffer an enormous loss. It is possible only if the money is divisible into small units. Any commodity which lacks this quality can not be accorded as money. In order for something to qualify as money, then it should have the following qualities or features: Divisibility. An ideal money material should possess the following qualities: 1. A thousand rupee note can be changed into the notes of small denominations. The qualities of good Money, are as under. Unless a person knows that the money which he accepts in exchange for his goods or services will be taken without any objection by others as well, he will not accept it. 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. Another quality of good money is that it should be capable of making small purchases. As such gold and silver are considered to be excellent money commodities. Good money is that which is durable and long lasting. In the case of oxen and grain, a small value occupies a large bulk and weight; hence, they are unsuited as money commodity. Good money is that whose value is fairly stable. This lecture contains the functions of money and qualities of good money material. 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. What is money? It is possible only if the various units of money are identical. –Money should be storable without any fall in value.