Qualities of good money

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Qualities of Good Money

Following are the qualities of good money:

General acceptance

The essential quality of good money is that it should be acceptable to all, without any hesitation in the exchange for goods and services.

Portability

It is also an important quality of good money that is should be easily transferable from one place to another for doing business and making payment. The paper money is easier to carry because it has minimum possible wait than metallic money.

Storability

Money should be storable and it should not be depreciate with time. If the money used is perishable it will lose its value in few days. Paper money has this quality of storability.

Divisibility

Good money is that which could be divided into small units without losing any value.

Durability

Money should be durable. It should not lose its value with the passage of time. The gold and silver coins do not wear out quickly and quality of money remains the same.

Economy

It is important quality of good money that it should be made economically. If there is heavy cost on issuing more money that is not good money. Good money is that has low cost and more supply. Paper money has this quality of economy.


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