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A perishable item such as a banana fails as money because it lacks which characteristic?
APortability, the ease of moving money about
BDivisibility, the splitting into smaller parts
CDurability, the ability to last without spoiling
DScarcity, the limited supply that gives it value
Answer & Solution
Correct answer: C. Durability, the ability to last without spoiling
1. Any item used as money must be durable.
2. A banana spoils, and the moment it spoils it becomes useless as money.
3. Metal coins and paper money were used by early societies precisely because they lasted a long time.
4. A banana is easy to carry and easy to split, so portability and divisibility are not what defeats it.
_Source: OpenStax Introduction to Business (CC BY 4.0), Ch 15 "Understanding Money and Financial Institutions", section 15.1 Show Me the Money_
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