Question

Write short note on Qualities of good money.

Answer 1

Acceptability – Good money is accepted by all because it serves as a medium of exchange. The material of which money is made should be acceptable to all without any hesitation. ... The essential quality of good money is that it should be acceptable to all, without any hesitation in the exchange for goods and services.

Answer 2

Answer:

The qualities of good money are -

• Acceptability - Acceptance of money is an important quality of money. Good money requires it to be accepted without hesitation. It has an intrinsic value of general acceptability since the legislation recognizes Money as the legal tender.
• Portability - Good money, apart from embracing it, often needs portability. If it is possible for people to move or transfer money from one location to another, it is good money.
• Durability - Aside from acceptability and portability, the product used to make money must last long without losing its quality. Ice and fruits, for example, aren't good money because they easily lose their value over time.
• Cognizability - It is critically important to be able to recognize money. Today, we can look at and claim the value of a currency note. When cash can not be understood, then it can be difficult for people to assess whether they are dealing with money or some lesser resource.