National Economics Challenge Practice Test 2025 – Complete Exam Prep

Question: 1 / 400

Which characteristic is NOT considered the best material to use for money?

Divisibility

Durability

Indivisibility

Indivisibility is not an ideal characteristic for money because effective currency should be divisible into smaller units to facilitate a wide range of transactions. A good medium of exchange allows for purchases of varying amounts, enabling both small and large transactions without losing value. If money were indivisible, it would limit how it can be used in everyday exchanges, making it impractical.

On the other hand, divisibility, durability, and uniformity are crucial qualities. Divisibility allows for precise transactions; durability ensures the money lasts over time without degrading; and uniformity assures that units of money are interchangeable with a consistent value. These characteristics contribute to the overall effectiveness and efficiency of a monetary system.

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Uniformity

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