Acceptability:- Unless people are prepared to accept the item in question as money it cannot be called money. The item chosen must be generally acceptable by everyone in exchange for goods and services and in settlement of debt. Money is accepted because a specific value has been conferred on it by an Act of Parliament or Decree.

Recognizability:- Money should be easily recognizable without reference to its weight shape or fineness.

Divisibility:- A good unit of account is one which is easily divisible into a range of denominations so that purchase of different quantities of goods and services can take place that change can easily be given where money of a higher denomination is given.

Durability:- Money in circulation should last for a reasonable time without deterioration. Bank notes have an average life of about one year while coins exceed twenty years in life.

Portability:- Money should be easy to carry about whether in large or small quantities. Good money is high in value but small in bulk.

Scarcity:- Good money is scarce but not too scarce. The money consists of sand or stones picked up from anywhere, the supply would be relatively unlimited and people would not be prepared to accept them in exchange for goods.

Homogeneity:-Good money is homogeneous. This means that every coin or note of the same denomination has the same buying power and is identical. In all respects top every other coin or note of the same denomination.

And finally good money should be convenient, cheap, easy for the government to print it.