Question

Write the merits of a good money material (any four)​

Answer 1

Answer:

General Acceptability: ADVERTISEMENTS:

Portability:

Indestructibility or Durability:

Homogeneity:

Answer 2

Merits of good money material

Explanation:

1. Good money material

• It is that the very essence of cash. Unless someone knows that the cash which he accepts in exchange for his goods or services are going to be taken with none objection by others yet, he won't accept it.
• It will cease to be current. Gold and silver are generally acceptable to any or all with none hesitation because they're used for ornamental and other purposes and may be easily sold as bullion, besides getting used for monetary purposes.

2. Portability:

• A commodity acceptable be used as money must be such it will be easily and economically transported from one place to the opposite. Precious metals possess this quality. within the case of oxen and grain, alittle value occupies an outsized bulk and weight; hence, they're unsuited as money commodity.

3. Indestructibility or Durability:

• As money is passed from hand handy and is kept in reserve, it must not easily deteriorate, either in itself or as a results of wear and tear.  
• Destructible articles, like eggs, dried cod fish, cattle or oil has certainly been used as currency; but what's treated as money sooner or later must not soon afterwards be devoured. Silver coins aren't equally lasting but wear out fairly slowly. intrinsically gold and silver are considered to be excellent money commodities.

4. Homogeneity:

• All portions or specimens of the substance used as money should be homogeneous, that is, of the identical quality, so equal weights have precisely the same value. so as that a commodity is also used as a measure valuable, it's essential that its units are similar altogether respects.
• Gold and silver are of the identical quality throughout; their various parts are similar in chemical and physical composition and their consistency is that the same throughout the mass.

5. Divisibility:

• The money material should be capable of division; and therefore the aggregate value of the mass after division should be almost precisely the same as before.
• If we use diamond as money and unintentionally it drops from our hand and breaks, we'll suffer an infinite loss. this is often not the case with precious metals. Their portions are often melted and remelted together any number of times without much loss.