For money to function effectively, it must possess several key characteristics:

• Durability: It must be strong enough to withstand physical wear and maintain its value over a long period.
• Portability: It must be easy to carry and transport in sufficient amounts to complete daily transactions.
• Divisibility: It should be easily split into smaller units to allow for transactions of different sizes.
• Uniformity: Each individual unit of money must be identical in quality and value to others.
• Acceptability: It must be widely recognized and trusted by the public as a valid tool for exchange.
• Scarcity: Its supply must be limited relative to demand to ensure that it retains its value over time.