Unless a person knows that the money which he accepts in exchange for his goods or services will be taken without any objection by others as well, he will not accept it. An ordinary person should be able to judge the correctness of money. Welcome to EconomicsDiscussion.net! I believe, if you can adopt these qualities, it is possible you perform better in blogging than before. The money material should be capable of being melted, beaten and given convenient shapes. Following are the qualities of good money: General acceptance. However, changes in the quality of money have been widely neglected. 13 - What are six qualities of the ideal money? In order for something to qualify as money, then it should have the following qualities or features: Divisibility. Good money is that which is durable and long lasting. Communicability:- Communicability is an essential quality of good money. Qualities of Good Money. It will cease to be current. Characteristics Of Money is very important subject for any business students.Any type of money may be considered as good money due to certain qualities. And this implementation has a vital role in the business environment. 4 Comments. What are the characteristics of money or the qualities of good money? The main quality of good money is its general acceptability. This quality of money makes best use of money possible. The Essential Qualities of Money The Essential Qualities of Money MORGAN, E. V. 1969-09-01 00:00:00 Because money is generally accepted as a means of payment, the holder of money can acquire any good or any other financial assets by means of a single transaction ; he can simply buy what he wants, whereas the holder of any other asset must convert it into the means of payment before he can buy. Therefore, people must have confidence in, and be ready to accept it as a medium of exchange. The government's backing to money creates a sense of confidence. They've found that people who are good with money are generally goal-driven, value-driven, accountable, and efficient. It means money must be a thing of continued use. it can’t easily be faked or copied; Must be generally accepted by a population; Valuable – generally holds value over time Share Your PPT File, Changes in Money Supply: it’s Meaning and Determinants. General Acceptability: it needs to last; Portable i.e. There are a lot of characteristics of money, but economic science determines six basic properties. By it, we mean the capability of a substance for being easily recognised and distinguished from all other substances. This is one of the easiest ejections a ref will ever make. 13 - Discuss the various ways in which London... Ch. Homogeneity 5. Silver coins are not equally lasting but wear out fairly slowly. Money is easily divisible. If we use diamond as money and by chance it drops from our hand and breaks, we will suffer an enormous loss. Now the notion of money has changed. Everyone must find it very easy to recognize it and know its value. However, in economics, money is taken in a broader sense. Money is a liquid asset used in the settlement of transactions. Any commodity which lacks this quality can not be accorded as money. It should also possess the attribute of impressionability so that it may easily receive the impressions. The paper money is easier to carry because it has less weight than metallic money. It practically happened in Kuwait during the gulf war, when people refused to accept Kuwaiti Dinars in payments. Humanity doesn’t seek second best as money (example: copper maybe, not rare enough) they always seek what works the … Indestructibility or Durability 4. As a medium of exchange, money has to be continually handed about; and it will cause great inconvenience if every person receiving it has to scrutinise, weigh and test it. Their portions can be melted and remelted together any number of times without much loss. In fact, holding money is a more effective way of storing value than … Money is primarily a current medium exchange, for a person to buy goods and services from other person in the form of coins and banknotes (Freeman, 2012). Infographic: The Properties of Money. Precious metals possess this quality. Malleability 7. Indestructibility or Durability 4. Write. Conclusion:- After discussing the essential qualities of a good money material, we find that so far not a single commodity has been … Paper notes and modern coins of different denominations are identical in size and color; therefore they can be recognized very easily. Terms in this set (5) Divisibility. Earlier writers seem, however, to have understood the subject almost as well. It is a common myth that traditional economies usually functioned on a system of barter such that goods were directly exchanged. Gold and silver are at once recognised by their distinctive colour, metallic and heavy weight for small bulk, and, as such, satisfy this condition admirably. Paper money is considered good money as it can be shifted easily from one place to another. Money should not be subject to fluctuations in value. Bartering was one way that people exchanged goods for other goods before money was created. Everything on earth lacks at least one or several attributes, so theyre disqualified for the job of money that humanity seeks. This website includes study notes, research papers, essays, articles and other allied information submitted by visitors like YOU. 13 - What are three functions of money? In the case of oxen and grain, a small value occupies a large bulk and weight; hence, they are unsuited as money commodity. Divisibility 6. Legal qualities of money. Homogeneity 5. The essential quality of good money is that it should be acceptable to all, without any hesitation in the exchange for goods and services. kelsey_mccormick83. NOTE : Anything that is generally acceptable as a means of exchange for goods and services bought is money. TOS4. easy to carry around, convenient, easy to use; Divisible i.e. Flashcards. Divisibility 6. Scarcity: A good money material must be scarce in quantity or the way to obtain money issued must kept low as compared to the desire for it. If money is not recognizable by the general public then it cannot be called money. Scarcity: A good money material must be scarce in quantity or the way to obtain money issued must kept low as compared to the desire for it. Qualities of the Material of Money Chapter V Many recent writers, such as Huskisson, MacCulloch, James Mill, Garnier, Chevalier, and Walras, have satisfactorily described the qualities which should be possessed by the material of money. In order for something to qualify as good money, then it should have the above qualities. So, here is how to become a successful blogger and make money in Nigeria or any other part of the world: Be a better blogger It should not deteriorate rapidly with the passage of time. This also allows for the ease of transaction. Learn. 13 - Complete each of the following sentences: A... Ch. The value of a material, which is used to measure the value of all the other materials, must be stable. An ordinary person should be able to judge the correctness of money. Characteristics of Money What qualities a commodity must have to become used as money 2.