A cashier gives one person a $5 and 15 $1 bills in exchange for a $20 bill. He gives a second person a $10 bill , a $5 bill and five $1 bills. which characteristics of money does he illustrate?
To determine which characteristics of money the cashier illustrates in these transactions, let's first define the characteristics of money:
1. Acceptability: Money should be widely accepted as a medium of exchange. It should be recognized and used by a majority of people.
2. Divisibility: Money should be easily divisible into smaller units to facilitate transactions of various sizes.
3. Portability: Money should be easy to carry and transfer.
4. Stability: Money should hold its value over time and not be subject to rapid depreciation or inflation.
5. Durability: Money should be able to withstand regular handling and use without deteriorating.
6. Uniformity: Money of the same denomination should be of equal value and appearance.
7. Limited supply: Money should be available in limited quantities to maintain its value and prevent excessive inflation.
Now, let's analyze the cashier's transactions:
In the first transaction, the cashier provides a customer with a $5 bill and 15 $1 bills in exchange for a $20 bill. This illustrates the characteristics of acceptability, divisibility, portability, stability, durability, and uniformity. The customer accepts the bills, indicating that they are widely accepted as a medium of exchange (acceptability). The money can be easily divided into smaller units (divisibility) and is portable enough for the customer to carry (portability). The bills hold their face value and do not depreciate during the exchange (stability). Additionally, the bills are durable enough to withstand regular circulation (durability), and all the bills of the same denomination have equal value and appearance (uniformity).
In the second transaction, the cashier gives a customer a $10 bill, a $5 bill, and five $1 bills. This also illustrates the characteristics of acceptability, divisibility, portability, stability, durability, and uniformity. The customer accepts the bills as a medium of exchange (acceptability). The money is divisible into smaller units (divisibility), easy to carry (portability), holds its value (stability), and remains in good physical condition (durability). The bills of the same denomination hold equal value and appearance (uniformity).
Hence, by providing widely accepted, divisible, portable, stable, durable, and uniform money in these transactions, the cashier illustrates multiple characteristics of money.