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Money must possess several characteristics. 1_______. Unless it is acceptable to everybody, it cannot be the medium of exchange, and would not naturally serve its purpose. 2_______.
You must be able to recognize easily what, and how much, you are paying or receiving in the form of money. 3_______. Things like cotton or coal cannot be good money because if large payments are to be made over a long distance, the cost of transporting them itself may be very heavy. Gold and silver are easy to pack up and send over a long distance. Money should also be storable, i.e., it should not decay like fruits, nor stink like fish.
4_______. Just as the length of a yard-stick should not change from time to time, the value of money should also not change. If the value of money itself changes, it becomes difficult to carry on business, maintain accounts and manage other economic activities, because the calculations would be upset from time to time.
First of all, it must possess acceptibility
It should also possess divisibility, in order that it may be convenient to make small payments
Money should also be portable and transportable
Stability of value is one more characteristic of money
