ECONOMICS (CBSE/UGC NET)

ECONOMICS

MONEY

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Question [CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]

Our money supply is limited in an attempt to control its value. This is an example of which characteristic of money?

A	Durability
B	Portability
C	Divisibility
D	Scarcity
E	Acceptability

Explanation:

Detailed explanation-1: -Characteristics of Money Scarcity: Money should be scarce enough to have some value but not so scarce as to be unavailable. Pebbles, which meet some of the other criteria, would not work well as money because they are widely available. Too much money in circulation increases prices and inflation.

Detailed explanation-2: -The characteristics of money are durability, portability, divisibility, uniformity, limited supply, and acceptability.

Detailed explanation-3: -in fact, a variety of items have been used as money over the centuries. The items that worked the best tended to have four basic characteristics: portability, divisibility, durability, and acceptability.

Detailed explanation-4: -The correct answer is Option C) The supply of Money remains fixed. Good Money has many characteristics like Stability, homogeneity, profitability, divisibility, durability, etc. The supply of Money is not included in the characteristics of Money.

There is 1 question to complete.