Question

Thinking of the six characteristics of money, explain why goats would not be good to use as money, but coins would be ok.

Answer 1

Reason - goats would not be good to use as money, but coins would be ok:

In my opinion, I think that Coins would be preferable because it is measurable equivalent to a specific amount. A goat’s worth could either be underestimated or overestimated.

The coins are also easily transferable, they can be transferred and transported at any point of time but in the same situation, a goat can't be transferred or transformed at any point of time as the need arises.

This question is a simple example of the barter system, as the system requires other trader to have the commodity required by this seller, which is mostly unlikely, So currency / coins helps in making the trade a lot more easier . Thus, coins are better .

Answer 2

Explanation:

Goats couldn't be used as money because of the durability, the animal can die in the future. They are very uncomfortable to transport, the coins are small and you can keep it in your pocket. In other aspects, people will have a lot of goats in their house and for buying food, they will need to transport more goats. Coins have uniformity and formality, the people will prefer an easy and civilized way to make business.