Wednesday, January 7, 2015

Good money has many qualities.

Yes, I agree with this statement.


Good money has the following features.

(i) General acceptability: Good money is easily accepted by all in exchange without any hesitation.

(ii) Divisibility: Good money is holding the quality of divisibility. Since it is divisible into different denominations. For example, 1 rupee, 10 rupees, etc.

(iii) Durability: Good money last for a longer period of time. For example, metallic coins are more durable than paper currency.

Good money also have the following peculiarities, 

Portability, homogeneity, Stability of value etc.