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State with reasons whether you agree or disagree with the statements:

There are many good qualities found in modern currency.

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Yes, I agree with the statement. There are many good qualities found in a modern currency like:

  • General Acceptability: It must be generally accepted as a medium of exchange.
  • Stability: The purchasing power of money should be stable because money serves as a store of value. 
  • Cognizability: It must be easily recognizable or identifiable. For E.g Notes of different denominations must be of different sizes, colours, etc. so that they can be easily identified. 
  • Durability: Money should be durable also i.e. its value should not fluctuate too much. 
  • Divisibility: Money should be divisible into units of smaller denominations.
  • Portability: It should be easy to handle and carry from one place to another.
  • Homogeneity: Money of the same denomination should be identical in shape, size, colour, etc.

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