Question

A small community uses cattle as money. A man from the community traded five cows for a plot of farmland. Which characteristic of his money allowed him to make this transaction?

A) divisibility
B) uniformity
C) acceptability
D) durability

Answer 1

Answer: C. Acceptability

Step-by-step explanation:

I took the test and made a 100! Acceptability means that a good or service is universally acceptable to all the people in an economy. If this was not true for cattle in this community, the transaction would not have gone through. Regardless of his money being divisible, uniform, and durable, if a person offered to trade cattle for farmland to someone wanting cash in return, it would not have been “accepted.” Therefore, if it wasn’t for the acceptability of his money, the transaction would not have been made.

Answer 2

Money is used as medium of exchange in the form of goods or item. When the farmer man traded the five cows so, that five cow will be durable to him. The cow can become his source of his income by the work done by the cattels. so the cows durability is more. Once the cow life sheds then he can make profit of it also. So, durabilty makes a major role in the characteristic of money.