What are the characteristics of money?

Today, money is produced using materials like paper, metal, and plastic, resulting in a durable medium. But, if we consider about perishable goods such as fruits, vegetables and meat, they lose their value very quickly. They are not durable. So, durability is one of the main money characteristics. 3. Characteristics of Money: Divisibility

What are the different types of money?

In contemporary markets, money can include government-issued legal tender or fiat money, money substitutes, fiduciary media, or electronic cryptocurrencies . Money is a system of value that facilitates the exchange of goods. The use of money eliminates the problem of bartering where both parties must have something the other wants or needs.

What is considered money?

Conceptually, anything is considered money if it functions as: 1) a medium of exchange, 2) a store of value, and 3) a unit of account. Given that money can have such a broad interpretation, we use monetary aggregates to measure the money supply, with categories based on liquidity.