ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -Money is defined as a unit of measure that is generally accepted and recognized as a medium of exchange in the economy. For a commodity or currency to be recognized as money, it must be fungible, stable, recognizable, portable, and durable.

Detailed explanation-2: -Durability is a necessary property of money because the money must be able to sustain its value over time. For this reason, beans, shells, livestock, or other objects previously used as money did not succeed overtime because they were not durable.

Detailed explanation-3: -The characteristics of money are durability, portability, divisibility, uniformity, limited supply, and acceptability.

Detailed explanation-4: -Portability is the ability of a good to be transported easily across space. Portability is an important feature of sound money; in order for a money to be widely adopted, and therefore usable, it must be able to move across borders, between individuals, and over long distances with relative ease.

Detailed explanation-5: -It retains its value over time, although it may lose some of its purchasing power due to inflation. Individuals may choose to keep their money for future use rather than exchange it today for other types of products or assets.