ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -Money must be able to withstand the wear and tear of many people using it. Trade is made easier because of this function of money that eliminates the need to barter (trade goods for goods).

Detailed explanation-2: -The fact that money must withstand the wear and tear that comes from being used over and over again is a measure of its c. durability.

Detailed explanation-3: -Durability is the ability of a good to retain its original state overtime. In order to be considered durable, a good must be difficult to damage or alter. Durability is a necessary property of money because the money must be able to sustain its value over time.

Detailed explanation-4: -Definition: The monetary value of an asset decreases over time due to use, wear and tear or obsolescence. This decrease is measured as depreciation.

Detailed explanation-5: -Durability: Any item used as money must be durable. A perishable item such as a banana becomes useless as money when it spoils. Even early societies used durable forms of money, such as metal coins and paper money, which lasted for a long time. Portability: Money must be easily moved around.