Answer to Question #207119 in Economics of Enterprise for AzoAce

Question

(a.) Explain "demand for money ?

(b.) State and explain any four (4) characteristics of money? 

Answer 1

a) The demand for money is the total amount of money that the population of an economy wants to hold.

b)I) Durability - money is made in such a way that it can used for a very long time.

ii) Uniformity - Money should have the same layout so as to minimise confusion.

iii) Acceptability - Money should be acceptable by every citizen since it is a legal tender.

iv) Limited supply - money should be in limited supply so as to maintain it's value.