ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -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.

Detailed explanation-2: -To summarize, money has taken many forms through the ages, but money consistently has three functions: store of value, unit of account, and medium of exchange.

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: -In terms of financial instruments, liquidity generally refers to those assets that can be converted into a medium of exchange quickly without a significant loss in value. Only highly liquid financial instruments can be considered as close substitutes for the medium of exchange and therefore be included in broad money.