BANKING GENERAL KNOWLEDGE
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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acceptability
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portability
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scarcity
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stability
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Detailed explanation-1: -In modern economies, the medium of exchange is currency. A currency must remain reasonably stable in value in order for it to work as an intermediary. If its value becomes unstable, it is no longer viable as a means of exchange.
Detailed explanation-2: -The characteristics of money are durability, portability, divisibility, uniformity, limited supply, and acceptability.
Detailed explanation-3: -General Acceptability An important quality of money is its acceptance. Good money requires acceptance to all without any hesitation. Since the law declares Money as the legal tender, it has an inherent quality of general acceptability.
Detailed explanation-4: -medium of exchange, something that people can use to buy and sell from one another. Perhaps the easiest way to think about the role of money is to consider what would change if we did not have it. If there were no money, we would be reduced to a barter economy.