What is money ? Explain its characteristics.

Explanation

Money is anything that is generally acceptable as a medium of exchange ( for instance, as a means of settling debts) and at the same time acts as a measure and a store of value. e.g naira and kobo in Nigeria.

The characteristics of Money are:

(i)Divisibility: It should be divisible into convenient units without losing its value, e.g. N50, N20 etc.

(ii)General acceptability:It should be acceptable in the society in which it is used.

(iii)Relatively scarce: It must be relatively scarce but not too scarce.

(iv)Portability: It should be easy to carry about.

(v)Durability: It should be able to last for a long period of time.

(vi)Homogeneity: The money material must be the same size and quality. Twenty naira note held by Mr. B must be the same twenty naira held by Mr. A in any part of the country.

(vii)Stability: The value of money must be stable.