Final answer:
The characteristic of money illustrated by the ability to change a dollar into smaller units like quarters or dimes is divisibility. This allows money to be used for transactions of different sizes and is crucial for money to serve its various functions in an economy.
Step-by-step explanation:
The divisibility characteristic of money is revealed by the fact that a dollar can be converted into four quarters or ten dimes. This aspect allows money to be divided into smaller parts which can then be used to purchase goods and services of lesser value, making trade more precise and convenient. It meets one of the essential functions of money, which include serving as a medium of exchange, a measure of value, and a store of value. Divisibility ensures that money can be widely used for transactions of varying sizes.
Money has gone through significant changes over centuries, from cattle and shells to coins and paper, and now to digital forms like credit cards and electronic payments. Despite this evolution, all forms must maintain characteristics vital for commerce, such as portability, durability, divisibility, and scarcity.
Answer: b. Divisibility