ECONOMICS (CBSE/UGC NET)

ECONOMICS

MONEY

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

The fact that a $20 bill can be exchanged for a 10, a 5 and 5 ones is an example of which characteristic of money?

A	Durability
B	Portability
C	Divisibility
D	Uniformity
E	Acceptability

Explanation:

Detailed explanation-1: -Divisibility: Money must be capable of being divided into smaller parts. Divisible forms of money help make transactions of all sizes and amounts possible.

Detailed explanation-2: -If someone wants to buy a smaller unit of a commodity, then divisibility of money can make it possible. For example, cows cannot function as good money. This is because you cannot divide a cow without making it lose its value.

Detailed explanation-3: -There have been many forms of money in history, but some forms have worked better than others because they have characteristics that make them more useful. The characteristics of money are durability, portability, divisibility, uniformity, limited supply, and acceptability.

Detailed explanation-4: -Durability. Portability. Divisibility. Uniformity and Fungibility. Limited supply. Acceptability.

There is 1 question to complete.