CHARACTRISTICS OR QUALITIES OF GOOD MONEY - WEEK FOUR

CHARACTRISTICS OR QUALITIES OF GOOD MONEY

For a commodity to serve as a good medium of exchange, it must possess the following characteristics: -

1. Relatively scarcity: - The commodity should be relatively scarce so that reasonable effort must be made before one can earn the money. If money is not scarce, it will not be valuable.
2. Durability: - The commodity should he capable of being kept for a long time without deteriorating easily else it may not be good store of value
3. Homogeneity: - The commodity should be identical in all respects to allow smooth exchange transactions take place. For instance, a fifty naira note in Onitsha should be an exact replica of another fifty naira note at Lagos.
4. Divisibility: - The commodity should be capable of being divided into smaller denominations to allow for exchange of small quantity of goods.
5. Acceptability: - The commodity must be generally accepted by people of a locality. If money possesses all other qualities without being generally acceptable it cannot function as a medium of exchange. Thus acceptability the most essential feature.

NOTE:

Credit Card: - a credit card is a small plastic card issue to users as a system of payment. It allows it holder to buy good and services

ATM card: - ATM card (it is also known as a bank card, client card, key card or cash card) it is a card issue by a bank to their customers .it can be used to withdraw cash and for money transfer.ATM means Automated teller machine.

Question

1 explain the characteristics of money

2 what is credit card?

3 what is ATM card?