What Are the Six Characteristics of Money?
The six characteristics of money are durability, portability, acceptability, limited supply, divisibility and uniformity. Money acts as a unit of account, a medium of exchange and a store of value.
Durability means that dollar bills or coins are easily replaceable should they become damaged. Portability means that money can easily be transported from one location to the next. Acceptability means that money is commonly accepted as a value exchange mechanism. Limited supply ensures that money holds its value. Divisibility implies that money can be broken down into smaller values. Uniformity establishes a standard for the look of various denominations.
Historically, cows have been used as a monetary exchange mechanism. However, they do not possess the six characteristics of money.
