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Characteristics of Money

At an earlier time in history bartering (trading of goods) was a way of life, and not a characteristics of money.

When the farmer needed wood he traded his meat, or the cloth material was bartered for teaching the children and that was good for a time until the people realize that some of the goods would go bad or the fisherman did not need to have any more lumber and so a new system rose out of a need a want.

The characteristics of money came because the new world began to open and trade to different parts of the world.

Although in some countries sea shells and special sticks were used, it was not a standard for all as a value representing the characteristics of money.

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What Are the 4 Characteristics of Money?

For this new approach to be use it had to meet four form of requirement which is a medium, a measure, a standard, a store.

One would be a medium of exchange which means it should be easily transportable, like paper money.

It had to be recognizable as something of value, which means that another person wants it and they are willing to pay the price.

Another characteristics of money was that it is not perishable, meaning that money is made with paper and other material such as plastic that gives it durability.

It should have little cause for contamination of disease that are not too contagious.

For money to have a value for all people around the world it had to have a standard or measure of its worth.

Able to Divide

Money needed to be able to divide into smaller ones without destroying the value, the money needed to be equivalent to another as well the weight and size has to agree to be the same.

Other characteristics of money is the ability to be stored, retrieve and be predictable when you retrieve it, difficult to counterfeit and the genuine must be easily recognizable.

To the last characteristics of money is liquidity which means that it has to be able to trade for something you want therefore money is accepted all over the world as a standard for buying and selling goods.


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More Free Advice

Your psychic medium can answer your personal questions about the best way to understand the characteristics of money with a free reading. Consult our archives to discover how other people’s questions have been answered on the characteristics of money.

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