Features of Money

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.

Functions of Money

The following are some important features of Money:


Features of Money


  1. Acceptability by the general public: It should be freely accepted in exchange for goods and services.
  2. Divisibility: To make the transaction go more smoothly, it should be simple to divide it into smaller parts.
  3. Durability: Coins and currency notes are used frequently and last for many years.
  4. Recognizability: To prevent confusion by the receiving person, it must be quickly identified and have certain distinctive characteristics.
  5. Portability: It can be transferred easily from one location to another.
  6. Homogeneity: Various units of it must be homogeneous in quality.
  7. Stability: Its value should be stable and serve as a measure of value.

Also, Read


Money

Meaning and Functions of Money

Functions of Money

Functions of Money

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