Qualities of A Good Money - SS1 Economics Lesson Note
Good money has several qualities that make it useful and valuable in economic transactions. Here are ten of these qualities:
-
Acceptability: Good money should be widely accepted as a medium of exchange for goods and services.
Portability: Good money should be easy to carry around and transport.
Durability: Good money should be able to withstand wear and tear over time and remain usable.
Divisibility: Good money should be easily divisible into smaller denominations to facilitate transactions of varying amounts.
Uniformity: Good money should be consistent in terms of weight, size, and appearance to avoid confusion and fraud.
Limited supply: Good money should have a limited supply to prevent inflation and maintain its value.
Stability: Good money should be stable in value over time, avoiding large fluctuations in purchasing power.
Recognizability: Good money should be easily recognizable and distinguishable from counterfeit currency.
Authenticity: Good money should be difficult to counterfeit or replicate.
Store of value: Good money should be a reliable store of value, maintaining its worth over time.