Question

State with reason whether you Agree or Disagree with the following statement:

There are many good qualities founds in modern currency.

Options

• Agree

• Disagree

Answer 1

Yes, I agree with this statement.

Reasons: 

Definitions of Money:

1. Prof Crowther” Money is anything that is generally acceptable as a means of exchange and at the same time gets as a measure and a store of value".
2. Prof Walker: "Money is what money does".

The qualities of money are as follows:

1. General Acceptability: Anything which is used as money must be easily accepted by all for exchange purpose.
2. Divisibility: Money should be easily divisible into smaller denominations to facilitate small transactions.
3. Durability : Money should also possess the characteristic of durability. Currency notes and coins are being used repeatedly and shall continue to do so for years together on account of durability. '
4. Cognizability : Money must be easily recognised. It should have certain distinct marks so as to avoid confusion by the receiving person.
5. Portability : It should be easy to carry from one place to another without any difficulty, expense and inconvenience, e.g. currency notes are easily portable.
6. Homogeneity : Money of a particular denomination must be homogeneous or identical in its features.
7.  Stability : Money should have (1 stable monetary value. It serves as a measure of value to exchange goods and services. These goods can be sold and purchased in future as per requirements.