Question

Identify and explain the main features of money.

Answer 1

The first and most important feature of the money should be the acceptability

1.Acceptability- The money should have the acceptability that is people should accept the money in exchange for the goods and services. This happens when the person is confident about the money

2. Portability- This means the money must be able to carry from one location to another location. It implies that the money should be light weight

3. Divisibility- It must be divisible to smaller units, we can see that many notes 100, 1000,10, 5 and this is called the divisibility. The money must be divisible.

4. Durablity- Another feature of the money is the durablity, the money should be long lasting. It should not depreciate very quickly. The modern money is made with special raw materials to last

5. Homogeneity- The money must look the same