What are the six main characteristics of money divisibility uniformity scarcity durability?
The characteristics of money are durability, portability, divisibility, uniformity, limited supply, and acceptability.
In order for money to function well as a medium of ex- change, store of value, or unit of account, it must possess six characteristics: divisible, portable, acceptable, scarce, durable, and stable in value.
durability, portability, divisibility, uniformity, limited supply, and acceptability. Objects used as money must withstand the physical wear and tear that comes with being used over and over again. If money wears out or is easily destroyed, it cannot be trusted to serve as a store of value.
Portability: Money must be easily moved around. Large or bulky items, such as boulders or heavy gold bars, cannot be transported easily from place to place. Divisibility: Money must be capable of being divided into smaller parts. Divisible forms of money help make transactions of all sizes and amounts possible.
: a special quality or appearance that makes an individual or group different from others. characteristic. 2 of 2 adjective. : typical of an individual or group.
Stability. Of all the qualities of good money, stability is probably the most essential one. The value of money cannot change for a long period of time and hence remain stable. If the value of money keeps changing, then it will fail to function as a measure of value and as a standard of deferred payment.
To say that money is divisible is to say that a unit of currency can be broken down into smaller units to facilitate exchange.
Durability: If money stays the same in terms of shape and substance over time, it is said to be durable. This means that it does not easily change form and can be used for a long period of time.
Uniformity. Every bill and coin of the same value needs to look the same. Money must be uniform in that one $20.00 bill and another $20.00 bill must be able to buy the same thing. Acceptable.
Bitcoin derives its value in the same way any currency does: by fulfilling the six characteristics of money. Those characteristics are: durability, portability, divisibility, fungibility, scarcity, and acceptability. We believe that Bitcoin is superior to any other money that has ever been created.
What is the durability characteristic of money?
Durable – Money must be able to last through many different people using it. Shells are not long lasting because they can be easily broken. The bills we use in the United States are printed on special paper made from cotton and linen.
Scarce. Scarcity is a critical characteristic of money because it is essential to the value of money over long periods of time. Everything that is valuable is scarce. Your life is valuable because it has a time limit.
The relative scarcity of money refers to a problem of shortage of supply or distribution of money in the economy with the presence of physical quantity. In other words, money in an economy is available, but it relates to the ability to own that money.
The idea of uniformity of money refers to the concept of having a single form of currency throughout a large area or country. This ensures stability and avoids the chaos of multiple currencies fluctuating in value.
Durability: Money must be able to withstand wear and tear and maintain its value over time. Uniformity: Money should be uniform in terms of quality and composition so that it is easily recognizable and difficult to counterfeit.
1. The six characteristics of money are durability, portability, divisibility, uniformity, limited supply, and acceptability. The U.S. dollar possesses all six characteristics as it is a physical currency that is durable, portable, and can be divided into smaller units.
Uniformity in currency means that each individual unit holds the same value. A $10 bill is uniform because it is virtually identical to any other $10 bill while a chicken may have a variety of possible values compared to another chicken and is, therefore, less uniform as a currency.
- Durability.
- Portability.
- Divisibility.
- Uniformity.
- Limited Supply.
- Acceptability.
In order to be most useful, money should be fungible, durable, portable, recognizable, and stable. These properties reduce the transaction cost of using money by making it easy to exchange.
| 2 | In 360, the unit's digit is 0, so the number is even. Hence, 360 is divisible by 2. |
|---|---|
| 3 | The sum of the digits 3 + 6 + 0 = 9. As 9 is divisible by 3. So, 360 is divisible by 3. |
| 4 | The number formed by the last two digits is 60. As 60 is divisible by 4. So, 360 is divisible by 4. |
What is divisibility in accounting?
The portion of profit, which can legally be distributed to the shareholders of the company by way of dividend, is called the 'divisible profit'.
A number is divisible by another number if it can be divided equally by that number; that is, if it yields a whole number when divided by that number. For example, 6 is divisible by 3 (we say "3 divides 6") because 6/3 = 2, and 2 is a whole number.
To summarize, money has taken many forms through the ages, but money consistently has three functions: store of value, unit of account, and medium of exchange.
What Currency Is Strongest Against the Dollar? If you're wondering what currencies are better than the U.S. dollar, the best answer would be the Kuwaiti dinar (KWD), the official currency of Kuwait, which is the strongest currency in the world.
In economics, a durable good or a hard good or consumer durable is a good that does not quickly wear out or, more specifically, one that yields utility over time rather than being completely consumed in one use.
References
- https://www.sofi.com/learn/content/how-many-bitcoins-are-left/
- https://www.techopedia.com/cryptocurrency/how-many-people-use-bitcoin
- https://homework.study.com/explanation/what-does-it-mean-to-say-that-money-is-divisible.html
- https://study.com/academy/lesson/the-functions-and-characteristics-of-money.html
- https://corporatefinanceinstitute.com/resources/economics/demand-for-money/
- https://finance.yahoo.com/news/alone-top-only-6-bitcoin-133000858.html
- https://www.investopedia.com/terms/m/money.asp
- https://finance.yahoo.com/news/crypto-rise-could-help-become-115000983.html
- https://en.wikipedia.org/wiki/Economics_of_bitcoin
- https://www.cnbc.com/2023/09/06/six-bitcoin-btc-billionaires-in-the-world-new-crypto-super-rich-report-says.html
- https://www.investopedia.com/ask/answers/100314/why-do-bitcoins-have-value.asp
- https://homework.study.com/explanation/does-modern-money-have-the-important-characteristic-of-money-why-or-why-not.html
- https://www.fastcompany.com/90949038/bitcoin-price-billionaires-list-crypto-wealth-2023
- https://corporatefinanceinstitute.com/resources/economics/how-is-currency-valued/
- https://www.cryptodispensers.com/blog/understanding-bitcoin-as-sound-money
- https://www.rba.gov.au/education/resources/explainers/cryptocurrencies.html
- https://www.investopedia.com/news/could-cryptocurrencies-replace-cash-bitcoin-flippening/
- https://river.com/learn/who-owns-the-most-bitcoin/
- https://cointelegraph.com/news/defining-bitcoin-money-currency-or-store-of-value
- https://www.barchart.com/story/news/16277476/what-if-the-us-dollar-looses-status-as-the-world-s-reserve-currency
- https://nbx.com/crypto101/how-many-people-own-1-bitcoin
- https://www.investopedia.com/ask/answers/032715/why-does-time-value-money-tvm-assume-dollar-today-worth-more-dollar-tomorrow.asp
- https://www.khanacademy.org/economics-finance-domain/ap-macroeconomics/ap-financial-sector/definition-measurement-and-functions-of-money-ap/v/functions-of-money
- https://river.com/learn/how-long-does-it-take-to-mine-one-bitcoin/
- https://www.bankrate.com/banking/what-are-bitcoin-atms/
- https://www.investopedia.com/articles/investing/092413/how-currency-works.asp
- https://homework.study.com/explanation/what-are-the-three-basic-functions-of-money-describe-how-rapid-inflation-can-undermine-money-s-ability-to-perform-each-of-the-three-functions.html
- https://illinoistreasurergovprod.blob.core.usgovcloudapi.net/twocms/media/doc/mmc-gr2-l1-sq3-close%20read-characteristics%20of%20money.pdf
- https://bitbo.io/how-many-bitcoin/
- https://research.stlouisfed.org/publications/page1-econ/2018/03/01/bitcoin-money-or-financial-investment
- https://www.nerdwallet.com/article/investing/cryptocurrency
- https://cointelegraph.com/learn/is-bitcoin-legal
- https://typeset.io/questions/what-is-uniformity-of-money-and-who-developed-that-idea-1irh9877ma
- https://www.madisontrust.com/information-center/visualizations/strongest-and-weakest-currencies-in-world-compared-to-us-dollar/
- https://homework.study.com/explanation/which-of-the-following-is-not-a-function-of-money-a-store-of-value-b-price-mechanism-c-medium-of-exchange-d-unit-of-account.html
- https://quizlet.com/111413856/functions-characteristics-of-money-econ-flash-cards/
- https://www.fool.com/investing/2024/02/05/how-much-of-your-portfolio-should-you-allocate-to/
- https://www.chegg.com/homework-help/questions-and-answers/function-money-satisfied-bitcoin-group-answer-choices-store-value-medium-exchange-unit-acc-q159704989
- https://byjus.com/question-answer/the-primary-function-of-money-is-transfer-of-value-measure-of-value-medium-of-exchange/
- https://www.investopedia.com/terms/c/cryptocurrency.asp
- https://tokentax.co/blog/how-to-cash-out-crypto-bitcoin
- https://www.internationalaccountingbulletin.com/news/crypto-study-which-country-has-the-most-bankless-billionaires/
- https://www.toppr.com/guides/fundamentals-of-economics-and-management/money/definition-and-functions-of-money/
- https://www.imf.org/en/Publications/fandd/issues/2018/06/what-are-cryptocurrencies-like-bitcoin-basics
- https://www.quora.com/What-are-the-most-essential-and-important-characteristics-of-money
- https://homework.study.com/explanation/when-talking-about-money-what-does-the-term-uniformity-mean.html
- https://www.ecb.europa.eu/euro/cash_strategy/cash_role/html/index.en.html
- https://finance.yahoo.com/news/tesla-missed-500-million-bitcoin-220012275.html
- https://quizlet.com/113480817/the-functions-and-characteristics-of-money-flash-cards/
- https://www.cbc.ca/documentaries/the-passionate-eye/searching-for-satoshi-the-mysterious-disappearance-of-the-bitcoin-creator-1.7013992
- https://www.takingcharge.csh.umn.edu/can-money-buy-happiness
- https://vaulted.com/nuggets/what-backs-the-united-states-dollar/
- https://quizlet.com/506399992/money-economics-flash-cards/
- https://byjus.com/question-answer/select-the-most-common-forms-of-money-in-circulation/
- https://www.merriam-webster.com/dictionary/characteristic
- https://digitalbell-bucket.s3.amazonaws.com/35570042-5056-907D-8D70-76E3188FDAB0.pdf
- https://www.investopedia.com/articles/investing/041515/why-cash-management-key-business-success.asp
- https://www.statista.com/statistics/1351731/richest-crypto-blockchain-billionaires-worldwide-before-crash/
- https://byjus.com/ias-questions/what-are-the-4-types-of-money/
- https://sites.google.com/somaiya.edu/macro-econimics/money/types-of-money
- https://www.pewresearch.org/short-reads/2023/04/10/majority-of-americans-arent-confident-in-the-safety-and-reliability-of-cryptocurrency/
- https://quizlet.com/132636648/econ-chapter-32-flash-cards/
- https://money.com/what-is-the-gold-standard/
- https://www.quora.com/What-methods-do-criminals-use-to-hide-their-money-Is-it-possible-for-them-to-use-bitcoin-or-other-cryptocurrencies-without-being-caught
- https://www.investopedia.com/news/tesla-billionaire-elon-musk-reveals-how-much-bitcoin-he-owns/
- https://primexbt.com/for-traders/what-happens-if-bitcoin-crashes-to-zero/
- https://www.firstbanknigeria.com/basic-types-of-money/
- https://www.projectfinance.com/functions-characteristics-of-money/
- https://www.imf.org/en/Publications/fandd/issues/Series/Back-to-Basics/Banks
- https://www.forbes.com/advisor/au/investing/cryptocurrency/how-to-earn-bitcoin/
- https://coinledger.io/learn/why-does-all-crypto-move-together
- https://www.toppr.com/guides/business-economics-cs/money-and-banking/qualities-of-good-money/
- https://d32ogoqmya1dw8.cloudfront.net/files/introgeo/cooperative/examples/answer_key_think-pair-share_fu.docx
- https://www.athena-alpha.com/characteristics-of-bitcoin/
- https://flexbooks.ck12.org/cbook/ck-12-cbse-maths-class-6/section/3.5/primary/lesson/divisibility-rules/
- https://www.stlouisfed.org/education/economic-lowdown-podcast-series/episode-9-functions-of-money
- https://www.sciencedirect.com/science/article/abs/pii/S1062976917300777
- https://quizlet.com/292360285/bblearn-pt-2-flash-cards/
- https://medium.com/5-minute-sweet-spot/10-reasons-why-life-is-more-than-just-money-e5a762424523
- https://en.wikipedia.org/wiki/Durable_good
- https://quizlet.com/explanations/questions/describe-the-functions-of-money-8823fd42-c8865671-5ac2-4b9d-8e60-2880881e1384
- https://www.hrfuture.net/talent-management/personal-development/why-does-money-have-so-much-power/
- https://www.investopedia.com/articles/investing/050715/can-bitcoin-kill-central-banks.asp
- https://quizlet.com/456407864/3-types-of-money-flash-cards/
- https://homework.study.com/explanation/what-is-the-relative-scarcity-of-money.html
- https://www.statista.com/statistics/1351742/billionaires-who-lost-most-money-crypto-crash/
- https://quizlet.com/217500332/five-characteristics-of-money-flash-cards/
- https://www.technologyreview.com/2014/02/18/173917/bitcoin-lacks-the-properties-of-a-real-currency/
- https://www.investopedia.com/ask/answers/121515/bitcoin-legal-us.asp
- https://www.imf.org/en/Publications/fandd/issues/Series/Back-to-Basics/Money
- https://quizlet.com/explanations/questions/which-of-the-following-is-not-a-function-of-e0bdd336-68c0-4528-9417-a4880e7d36c0
- https://nydig.com/learn/why-is-bitcoin-valuable
- https://dergipark.org.tr/en/download/article-file/2497722
- https://www.investopedia.com/terms/s/satoshi-nakamoto.asp
- https://www.studysmarter.co.uk/explanations/macroeconomics/financial-sector/money/
- https://study.com/academy/lesson/the-four-basic-functions-of-money.html
- https://brainly.com/question/31196331
- https://www.lawinsider.com/dictionary/primary-function
- https://www.cliffsnotes.com/study-guides/economics/money-and-banking/functions-of-money
- https://quizlet.com/103782026/the-six-characteristics-of-money-flash-cards/
- https://lendedu.com/blog/why-money-is-important/
- https://www.sparknotes.com/math/prealgebra/wholenumbers/section2/
- https://www.philadelphiafed.org/-/media/frbp/assets/institutional/education/lesson-plans/functions-and-characteristics-of-money-lesson.pdf
- https://www.techopedia.com/who-owns-the-most-bitcoin
- https://www.linkedin.com/pulse/tesla-still-owns-9720-bitcoins-conio-pqd6f
- https://www.cmcmarkets.com/en/learn-forex/16-strongest-currencies-in-the-world
- https://www.stilt.com/crypto/how-to-turn-bitcoin-into-cash/
- https://homework.study.com/explanation/can-you-imagine-a-world-without-money.html
- https://www.wsj.com/finance/currencies/bitcoin-price-all-time-high-investing-fomo-7c1c77ce
- https://infinitylearn.com/surge/study-materials/english/essay/money-essay/
- https://thehappinessindex.com/blog/can-money-make-you-happy
- https://courses.lumenlearning.com/suny-osintrobus/chapter/show-me-the-money/
- https://quizlet.com/79436207/economics-chapter-8-flash-cards/
- https://www.leonschools.net/cms/lib/FL01903265/Centricity/Domain/7364/Week%203%20Social%20Studies.pdf
- https://corporatefinanceinstitute.com/resources/economics/money/
- https://www.oreilly.com/library/view/fundamentals-of-auditing/9789332501379/xhtml/chapter008.xhtml
- https://changelly.com/blog/bitcoin-price-prediction/
- https://river.com/learn/what-will-happen-after-all-bitcoin-mined/
