Question

select the correct answer. which of the following is a characteristic of money? a. indivisibility b. variation c. limited life d. limited supply

Explanation:

Money has several characteristics. Indivisibility is not a characteristic as money can be divided (e.g., a \$10 bill can be exchanged for two \$5 bills). Variation is not a standard characteristic. Limited life is not correct as money (like currency notes) can have a relatively long - term existence and is replaced rather than having a 'limited life' in the sense of perishing quickly. However, money has a limited supply (central banks control the money supply to maintain its value).

Answer:

D. limited supply