A good money material must possess following qualities:
1. General Acceptability
A good money material is one that I generally acceptable by all without any hesitation. It means that any one will be willing to accept it as a mean of payment and in the discharge of any obligation.
2. Recognizable
Good money is one that can be easily recognized by seeing and touching. It should be of such a nature that can easily be identified everyone. Further different coins and notes should be of different color and size in order to avoid of any confusion.
3. Economical
A good money material should be economical. The cost of printing currency notes a minting of coins must be low. The material of money must be easily available at reasonable prices.
4. Elasticity
The good money material has the quality of elasticity. The material being used must be of such a nature that it can be used to increase the supply of money when there is increase in demand.
5. Easily Meltable
The money material should be capable of being melted, remelted, can be given suitable shapes and can be stamped. Metals are good money material as these can be given any shape. Paper money can also be recycled to produce new notes.
6. Portable
Good money material must be of such a nature that it can easily be transported from one place to another. The paper money can easily be transported from one place to another as compared to coins.
7. Homogenous
The material used as money must be of same quality: otherwise it will lack general acceptability. The color, size and weight of the currency notes are kept same so that everyone accepts it in confidence.
8. Durable
A good money material should be durable i.e it should not lose value within a short time period. Metals are more durable as compared to any other material that is used as money.
9. Divisibility
A good money material must be divisible into small parts without loosing its value. Both the costly and cheaper thing can be purchased from such money.
10. Difficult to Copy
A good money is one which is very difficult to copy. There must be certain mark on it which can be easily identified by every one.
11. Stability of Value
The good money material should be comparatively stable in value. If the value of material used in money keep on changing it will create problem for making future payments.
12. Storability
One of the qualities of a good money material is that it can be stored for a longer time period without loosing value to meet the future needs.
13. Scarcity
A good money material should be scarce in quantity or the supply of money issued must kept low as compared to the desire for it. Scarcity of money will keep people always working hard to earn more money in order to meet requirements of life.