For anything to be recognized as money it needs to have which of the following professiona...........

Indian Economic System Money and banking

For anything to be recognized as money, it needs to have which of the following professional services characteristics?

1. Act as an intermediate in the exchange process

2. Standard unit for quoting prices

3. Must be easily divisible

4. Have higher value in alternative uses

Select the correct answer using the code given below.

This questions was previously asked in

CAPF 2021 Paper-1

1, 2 and 4

2 and 3 only

1, 2 and 3

1, 3 and 4

1, 2 and 3

In order for something to qualify as money, then it should have the following qualities or features:
Divisibility: Money must be able to be easily divided into smaller units or denominations in order for one to be able to use to carry out even the smallest of transactions. Portability:
By being portable, money must be able to be easily carried by a person from one place to another.
Acceptability: Money must be something that is generally accepted by all the people of a particular area, region, country or territory.Scarcity: Money should not be too scarce but limited in supply
.Stability: Anything being used as money should have its value being able to enjoy a reasonable stability over long periods of time else people are going to reject it.Difficult to imitate: Any material that is used as money should be very difficult to imitate.
Standardized unit: Money should have a standardized unit:
This means that the various units of money must be homogeneous.

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