ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -A commodity fit to be used as money must be such that it can be easily and economically transported from one place to the other. In other words, it must possess high value in small bulk. Precious metals possess this quality.

Detailed explanation-2: -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.

Detailed explanation-3: -Portability. While the cow is difficult to transport to the store, the currency can be easily put in my pocket. Divisibility.

Detailed explanation-4: -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-5: -We also know that we can measure money and break it down into smaller units when purchasing items. Lastly, we know that in order for money to be a functional means to pay for goods or services, it needs to fulfill four characteristics: durability, divisibility, transportability, and the inability to counterfeit.