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Which characteristic of money makes transactions of every size possible?
ADivisibility, so money splits into smaller parts
BDurability, so money survives years of handling
CPortability, so money moves easily between places
DScarcity, so money keeps its value in exchange
Answer & Solution
Correct answer: A. Divisibility, so money splits into smaller parts
1. Money must be capable of being divided into smaller parts.
2. Divisible forms of money are what make transactions of all sizes and amounts possible.
3. A note that could not be broken into smaller units would only settle payments of exactly its own value.
4. Durability, portability and scarcity each matter, but none of them is about paying small amounts.
_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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