Answer to Question #240394 in Economics for Abo

Question

Describe those characteristic/properties that make money useful in an economy like South Africa

Answer 1

Despite all the variety of forms and functions of money, they constitute a single instrument through which economic relations in society are realized. However, in order for money to be used as a full-fledged economic instrument, it must meet a number of requirements, depending on the level of development of socio-economic relations in society. The higher the level of relations, the more stringent the conditions, which in turn leads to the evolution of the financial instrument. And in order to meet the constantly changing requirements of society, money must have a number of specific properties, such as durability, divisibility, limited quantity, and others.