Qualities of money - SS1 Commerce Lesson Note

The qualities of money can be summarized as follows:

·         Acceptability: Money should be widely accepted as a form of payment by individuals, businesses, and institutions. It should be recognized and trusted as a medium of exchange.

·         Divisibility: Money should be easily divisible into smaller units or denominations to facilitate transactions of varying values. This allows for flexibility in making purchases and receiving change.

·         Durability: Money should be able to withstand wear and tear, lasting over time. It should not easily deteriorate or lose its value through physical damage or decay.

·         Portability: Money should be easy to carry and transport, allowing for convenient transactions. It should have a high value relative to its weight and size, making it practical for everyday use.

·         Scarcity: Money should have a limited supply to maintain its value. If money becomes too abundant, it can lead to inflation, reducing its purchasing power. Scarcity helps ensure that money retains its worth.

·         Uniformity: Money should have a consistent and standardized appearance, making it easily recognizable and distinguishable from counterfeits. Uniformity allows for quick verification and acceptance by individuals and businesses.