Properties of Money
1. Acceptability of Money
First property of money is
its General Acceptability i.e. money should be acceptable in the market to
carry out the personal or business transactions. In simple word money should be
able to buy good & service in the market.
2. Money must have Legal backing
Second Property of money is
its legality i.e. money could be legally used for transactions. For example a foreign currency cannot be used for domestic purchases, because it is not legal
(not authorized).
3. Convenient Carriage
Third Property of money is easy
carriage. Money should support easy & convenient transportation. In other word
money should be easy transportable to one place to another. The transport ability was one of the major causes of introduction of paper money in place of coins.
4. Durability of Money
Fourth Property of money is
its durability. Money should not be affected by normal weather condition. Money
is expected to show resistance for extreme weather conditions. Currency notes
and coins in modern world used special material to ensure its durability.
5. Divisibility of Money
Fifth Property of money is
its divisibility i.e. money should also reasonable divisibility to purchase low
value goods.
6. Standard Design
Sixth Property of money is
its standard design. Money should be available in standard form otherwise it would
not be considered as legal money. It means legality of money and its design are
closely linked.
