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Key Characteristics of Money Explained

The document outlines the key characteristics of money, including durability, portability, divisibility, uniformity, acceptability, limited supply, and recognisability. It evaluates various historical items used as money, such as salt, cattle, cigarettes, large boulders, rats, and copper, noting their strengths and weaknesses in meeting these characteristics. The reflection section discusses copper as the most effective form of money and rats as the least effective due to acceptability and health concerns.

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mandocreed805
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6 views2 pages

Key Characteristics of Money Explained

The document outlines the key characteristics of money, including durability, portability, divisibility, uniformity, acceptability, limited supply, and recognisability. It evaluates various historical items used as money, such as salt, cattle, cigarettes, large boulders, rats, and copper, noting their strengths and weaknesses in meeting these characteristics. The reflection section discusses copper as the most effective form of money and rats as the least effective due to acceptability and health concerns.

Uploaded by

mandocreed805
Copyright
© All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd

Do These Items Possess the Characteristics of Money?

Instructions:
Throughout history, different societies have used unusual items as money. But to be effective, money needs to
have certain key characteristics:

Key Characteristics of Money


Trait Meaning
Durability Does it last a long time without spoiling or breaking?
Portability Can you carry or move it around easily?
Divisibility Can you break it into smaller equal parts for smaller transactions?
Uniformity Are all units the same in value and appearance?
Acceptability Do most people agree to use it as money?
Limited Supply Is it hard to find or make more of it, so it holds value?
Recognisability Is it easy to recognise and trust as money?

Task:
Tick ⬛ if the item has the characteristic. If not, leave it blank +. Then list the missing characteristics.

Item Used as D P Di U A LS R Missing Characteristics


Money
Salt (Ancient ✅ Divisibility
Rome)
Cattle (Ancient Durability, portability, Divisibility,
Lands) Uniformity
Cigarettes Divisibility
(WWII POW
camps)
Large Boulders Portability, Uniformity, Limited
(Yap Island) Supply
Rats (Easter Durability, Divisible, Uniformity
Island)
Copper (Ancient Divisibility
Babylon)

Reflection:
1. Which item do you think was the most effective as money? Why?

I think copper because they come as a unit of account (single coin), were used for mediums of exchange to buy
goods and services like bread and also can be stored for a relatively long time.

2. Which item would be the most difficult to use today? Why?


Probably rats because no-one seems them as acceptable forms of payment and they also cannot be divised and
carry lots of diseases which can harm the consumer.

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