ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -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-2: -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-3: -The characteristics of money are durability, portability, divisibility, uniformity, limited supply, and acceptability. Let’s compare two examples of possible forms of money: A cow. Cattle have been used as money at different points in history.

Detailed explanation-4: -Following are the qualities of money. 1) General acceptability-The thing which acts as money must be easily accepted by all without hesitation for exchange. 2) Divisibility-It should be divisible into different denominations, e.g., 5 rupees, 10 rupees, 50 rupees, etc. 3) Durability-It should be durable.

Detailed explanation-5: -Portability: Money must be easily moved around. Large or bulky items, such as boulders or heavy gold bars, cannot be transported easily from place to place. Divisibility: Money must be capable of being divided into smaller parts. Divisible forms of money help make transactions of all sizes and amounts possible.