Question

Throughout history, all sorts of interesting things have been used as money, including fresh fish and cattle.Fresh fish is not an effective form of money. What essential characteristic of money does fresh fish lack that most makes it ineffective?medium of exchangestore of valueunit of accountstackablityallocated by the governmentCattle is not an effective form of money. What essential characteristic of money does cattle lack that most makes it ineffective

Answer 1

Answer: Fresh fish lacks store of value feature.

Cattle lacks medium of exchange feature.

Explanation: In the given case the problem with using fresh fish as a medium of exchange is that it cannot be stored for the purpose of future use as it will rot in a short span leading to decrease in its value.

Whereas, the problem with cattle is that it cannot be used as a medium of exchange as one has to have a need of something valuable as a full cattle because cattle in pieces will have no value.