Qualification > Commerce

help regarding a question - economics

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Priya:
Hey :)

Explain the characteristics required by money if it is to carry out its functions effectively.

Can you help me explain the link between the functions of money and the characteristics, please?

Thanks

twilight:
the functions of money r necessary to make the characteristics function effectively
for eg. for money to b used as a medium of exchange it needs to be:
 divisible
 acceptable
 limited in supply, scarce (to hav a value),
 portable(to be easily carried around),convinient too

for it to act as a store of value it needs to be durable, stable in value, etc

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