Economicseducation

State Eight Characteristics of Money

  1. No intrinsic Value: The commodity that should serve as money must have little or no value in itself as opposed to its value of exchange.
  2. Generally Acceptable: Money must be generally acceptable by all in the society or country as a means of exchange.
  3. Portability: The object that serves as money must be something that can be carried about from one place to the other, i.e such object must have light weight.
  4. Homogeneity: Each unit of money must be same in size, colour and quality and be the same nationwide.
  5. Durability: The object that will serve as money must be able to last long, it must not be a perishable commodity, it must be able to stand the test of time.
  6. Relative Scarcity: Money must be relatively scarce, it must not be too many so as not to lose its value.
  7. Divisibility: Money must be capable of being divided into smaller units e.g 2500, 3200 e.t.c. to enable it to purchase both low and high priced commodities.
  8. Stability: in order to encourage lending and borrowing of money, the value of money must

Oluwamuyide Peter

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