LIVE Course for free

Rated by 1 million+ students
Get app now
0 votes
in Economics by (34.3k points)
closed by

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

There are many good qualities found in modern currency.

1 Answer

+1 vote
by (34.1k points)
selected by
Best answer

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.

Related questions

0 votes
1 answer
0 votes
1 answer
asked Dec 23, 2021 in Economics by Shilpajadhav (36.0k points)
0 votes
1 answer
0 votes
1 answer
asked Mar 15, 2021 in Economics by Daivi (26.1k points)

Welcome to Sarthaks eConnect: A unique platform where students can interact with teachers/experts/students to get solutions to their queries. Students (upto class 10+2) preparing for All Government Exams, CBSE Board Exam, ICSE Board Exam, State Board Exam, JEE (Mains+Advance) and NEET can ask questions from any subject and get quick answers by subject teachers/ experts/mentors/students.