Chapter 14, Problem 10AA

To determine

To evaluate:The other characteristics ofmoney that should be possessed apart from durable and divisible.

Explanation of Solution

Some other characteristics of the money apart from durable and divisible are portable, stable in value, accepted as a measure of exchange. The portable characteristic states that money is easier to carry. People can carry a large sum of paper money.

Another characteristic is that it is accepted as a measure of exchange that means a certain value of money will be exchanged against a certain value of goods. Moreover, acceptance in the United States is focused on the expectation that many will continue to accept coins for paper currency.

Money can be easily stored and can utilize currently as well as in the future but this is not possible for the goods to keep for a longer period especially perishable goods.

Economics Concept Introduction

Introduction: Money certainly helps to eliminate the issues of the barter network. This facilitates the exchange of products and services and helps to keep the trading smooth.