ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -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-2: -The characteristics of money are durability, portability, divisibility, uniformity, limited supply, and acceptability.

Detailed explanation-3: -Money is often defined in terms of the three functions or services that it provides. Money serves as a medium of exchange, as a store of value, and as a unit of account. Medium of exchange. Money’s most important function is as a medium of exchange to facilitate transactions.

Detailed explanation-4: -Money Should Be Fungible The word fungible refers to a quality that allows one thing to be exchanged, substituted, or returned for another thing, under the assumption of equivalent value. Thus, units of money should be interchangeable with one another. For example, metal coins should have a standard weight and purity.