Money is something that is generally accepted as a medium of exchange. It is an instrument that serves as a medium of exchange, a measure of value, a store of value and a standard for deferred payments.
When an economy develops, there is an abnormal increase in economic transactions. Because money is generally acceptable, it is indispensable as a medium of exchange.
The following are some important features of Money:
Features of Money
- Acceptability by the general public: It should be freely accepted in exchange for goods and services.
- Divisibility: To make the transaction go more smoothly, it should be simple to divide it into smaller parts.
- Durability: Coins and currency notes are used frequently and last for many years.
- Recognizability: To prevent confusion by the receiving person, it must be quickly identified and have certain distinctive characteristics.
- Portability: It can be transferred easily from one location to another.
- Homogeneity: Various units of it must be homogeneous in quality.
- Stability: Its value should be stable and serve as a measure of value.
Also, Read
Meaning and Functions of Money