Question

Why would a sheep, shirt and a snickers bar be a good or poor form of money? Explain using all the characteristics of money.

Answer 1

Answer: See explanation

Explanation:

Money is anything that is used to make payments and transactions. A sheep, shirt and a snickers bar are a poor form of money as they don't have the characteristics of what money should be.

Some of the characteristics of money include portability, acceptability, divisibility, durability, uniformity and limited supply.

A sheep, shirt and a snickers bar cannot be used as money because they can be produced in excess as they can have unlimited supply. Also, a sheep is heavy and doesn't follow the characteristics of portability.

Also, a cloth and snickers bar isn't durable as they can spoil easily. Also, they cannot be divided into smaller denomination. Therefore, the divisibility characteristics isn't followed.

In conclusion, they are bad form of money.