There are several qualities or characteristics of money. But before we go into that let’s know what money is.
Money is the medium of exchange. Different countries have or use different kinds of currency. Money comes in different forms.
Qualities/Characteristics of Money
Money must the accepted as a mode of payment in a particular country. This shows the confidence the people of that country have in that money.
Portability is another qualities/characteristics of money.
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Money must be portable, something you can carry around without any stress. It must be light in weight and must not be heavy.
When there is too much money in the economy, the money will lose its value and that means there will be an increase in the price of goods and services.
Money must be durable which means it must last long. Money must not be perishable. This is the reason that most forms of money come in paper or coin form.
Another qualities/characteristics of money are that it must be homogeneity.
Every Unit of money must be the same in terms of shape, size quality, and colour.
For Example, you can’t see a longer Naira Note and a small Naira Note. You can’t see a Red 10 Naira Note and a Blue 10 Naira Note.
The value of money should be stable. This encourages foreign investors to invest in the economy of a nation.
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When the value of money in a country is not stable and there is always a dip in the value of money in a country, foreign investors will be discouraged to invest in the economy of that nation.
Money must easily be recognized by the total number of people in the country. It must not be easily counterfeited. For Example in Nigeria, Everybody knows what a ten naira note looks like, or how a thousand naira note looks like.
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Money must be capable of being divided into smaller units. This is to enable people to buy what they want to buy at different prices. For Example 50 Naira and 100 Naira.
That will be all on the Qualities/Characteristics of Money. Please drop your comment about this article below, we will love to hear from you.