Features of money

Ensure that your products have a specific branding standard which is recognized in different parts.

What is money

Imagine the weight of a money bill. Its value comes from being declared "legal tender"-an acceptable form of payment-by the government of the issuing country. In an economy where people have very specialized skills, this kind of exchange would take an incredible amount of time and effort; in fact, it might be nearly impossible. Normally, money is expected to be light weight. In fact, a lot of different "things" have been used as money over the centuries--gold, silver, copper, nickel, animal skins, chocolate bars, cigarettes, precious gems, semi-precious gems, really precious gems, and assorted food products. Third: Money is a medium of exchange. It should be neither too hard nor too soft. Money that is easily duplicated ceases to be THE medium of exchange. While governments try to keep pace with counterfeiters, they are usually a step or two behind. It is valued because it is legal tender and people have faith in its use as money. It should also possess the attribute of impressionability so that it may easily receive the impressions. Transcript Today I'm talking about money. In order to appreciate the conveniences that money brings to an economy, think about life without it. The characteristics of money are durability, portability, divisibility, uniformity, limited supply, and acceptability. In other words, it must possess high value in small bulk.

What is money? This can only happen when people are confident that it is what it is being called, money.

functions and forms of money

Stability of Value! It must look the same Another feature is that money must be the same, not similar. Over time people grew to trust the paper certificates as much as the gold.

In order to possess general acceptability, a commodity should have some intrinsic utility independent of its value for monetary purpose. If you are shopping for a new computer, the price could be quoted in terms of t-shirts, bicycles, or corn.

This way, it should be easy to buy things in whatever quantum or number one decides to.

Features of money

Gold coins were valuable because they could be used in exchange for other goods or services, but also because the gold itself was valued and had other uses. Transcript Today I'm talking about money. What is money? In contrast, people are more than willing to accept dollar bills. Related posts:. Money that is easily duplicated ceases to be THE medium of exchange. In business you cannot always rely on paper money coming in so branch out and allow for online transactions. Money is something that people use every day.

For example, one, two, five, ten, twenty and fifty cedis in Ghana, in addition to the coins which are in five, ten, twenty and fifty pesewas. Knowing the value or price of a good, in terms of money, enables both the supplier and the purchaser of the good to make decisions about how much of the good to supply and how much of the good to purchase.

Generally Acceptable This deals with the fact that the form of currency must be acceptable.

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Top 8 Qualities of an Ideal Money Material