1. Qualities or Characteristics of Money

1. Acceptability: Money should be generally acceptable by the people of the community as the main medium of exchange. This is the most important characteristics of. Money. This characteristic tends to command the confidence of the public in the modem system of exchange. The law forces everyone to accept it as a medium of exchange. For example, it is a crime to reject the FCFA in Cameroon.
2. Durability: Money should be capable of being used or stored over a long period of time without deterioration. This mean money should not easily get bad. For example, there are coins in circulation in Cameroon since 1972 because they are durable in nature.
3. Portability: Money should be easily carried about. This quality eliminates the bulky and the cumbersome nature in which commodities were difficult to deal with or carried about in the barter system of exchange. Someone can today conveniently carry 10 billion in a small piece of paper and move about with it but cannot carry goods worth of 10 billion around.
4. Divisibility: Money should be easily divided into smaller units or denominations without loss in value. It should be able to buy large and small quantities of goods and services. This quality again eliminates the indivisibility problem of large goods in the barter system thus facilitating exchange between large and small commodities. It also enhances measurement and comparison of national products over time.
5. Homogeneity: Any acceptable medium of exchange serving as money should be homogeneous both in type and quality of the material used in making it. This makes counterfeiting difficult. Homogeneity of money enhances acceptability in the community thus facilitating exchange.
6. Scarcity: Money should be relatively scarce. This characteristic of money commands the confidence of the community using it and enables the money to possess a strong purchasing power.
7. Stability: Good money should be stable in value. Its value should not fluctuate too often because people will lose confidence in it.
8. Non counterfeit ability: Good money should not be easily duplicated or counterfeited.
1.  Recognisability: Good money should be recognizable at sight and touch I. e. It should have easy identification mark which makes it easier to identify in order to avoid confusion.

Given these characteristics, examples of good money would include coins, Bank notes and current account or demand deposits.