Which of the following is NOT considered a fundamental property of money in economics?

• A. Colorfulness
• B. Portability
• C. Durability
• D. Divisibility

Answer: (A)

Verified step by step guidance

1. Step 1: Understand the fundamental properties of money in economics. These properties are characteristics that make money effective as a medium of exchange, a store of value, and a unit of account.
2. Step 2: Recall the commonly accepted fundamental properties of money, which include: Portability (easy to carry), Durability (long-lasting), Divisibility (can be divided into smaller units), Uniformity (consistency in appearance and value), Acceptability (widely accepted), and Limited Supply (scarce enough to hold value).
3. Step 3: Review the options given: Colorfulness, Portability, Durability, and Divisibility.
4. Step 4: Identify which option does not fit the list of fundamental properties. Colorfulness is not a recognized property of money in economics because the color of money does not affect its function as money.
5. Step 5: Conclude that Colorfulness is NOT considered a fundamental property of money, while the other options are essential characteristics.