Explanation The six essential qualities of ideal money are durability, portability, divisibility, uniformity, limited supply, and acceptability. 1. Durability - Durability of money is such that it can be used over and over again; hence it must survive wear and tear for long periods. In business one cannot always rely on paper money coming in, thus giving way for online transactions. In other words the fact that one cannot always deal with paper money is an opportunity to expand the business beyond the paper and achieve greater durability through online transactions. 2. Portability - Portability is that money must be able to go wherever such that it is easy to transport as people travel. Businesses can enable pay pal, visa transactions and any other transaction platforms that encourage the portability of money thereby making goods available to the extent of the portability of money. 3. Divisibility - This aspects deals with the fact that money must be easily divided to enable a person to buy different products. A shop should offer different products which allow for different denominations. So if a person walks in wanting something for a dollar there should be something in it for them. Goods and services allow or encourage customers to spend different denominations...

4th Edition

ISBN: 9781305436862

Author: William A. McEachern

Publisher: Cengage Learning

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Question

Chapter 13, Problem 1.2PA

To determine

Six qualities of ideal money.

Concept Introduction: Money has a major influence on the lives of most people. The more money a person makes, the more goods and services he can consume, resulting into a higher standard of living.

Expert Solution & Answer

Chapter 13 Solutions

ECON: MACRO4

Ch. 13 - Prob. 1.1PA Ch. 13 - Prob. 1.2PA Ch. 13 - Prob. 1.3PA Ch. 13 - Prob. 1.4PA Ch. 13 - Prob. 1.5PA Ch. 13 - Prob. 1.6PA Ch. 13 - Prob. 2.7PA Ch. 13 - Prob. 2.8PA Ch. 13 - Prob. 3.9PA Ch. 13 - Prob. 4.10PA

Ch. 13 - Prob. 4.11PA

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Can you name some item that is a store of value, but does not serve the other functions of money?

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