The characteristics of money

Money can be best describe as anything widely accepted as payment for goods and

services. In economics aspect, money is a means of payment, a store of value and a unit of account.

Therefore, it has many characteristics in order to make it considered as money.

(http://www.schoolmattazz.com/2016/10/money-definition-characteristics/ )

I. Transportability

First and foremost, the characteristics of money is transportability. It means that

money must be easily moved from one location to another when such movement is needed

to complete exchanges. In other words, it means easy to carry everywhere. This is because

if money is not transportable so it is no used. Moreover, it must be convenient and easy to

use.

II. Durability

Next characteristics is durability which means that an item remains the same shape,

form and substance over period of time. The durability also means that money must not

easily decompose, deteriorate and change form. This include social and institutional

durability. In addition, the durability is crucial for money to perform some related functions

of store of value and medium of exchange. People are willing to accept an item in payment

for a good because they are assured that it can be traded again for some other good. Thus,

basically an item represent a medium of exchange because it stores value. This transaction

requires durability.
III. Divisibility

Then, it must can be broken down into smaller denominations which is divisibility.

It means money can be divided into small increments that used in exchange for goods and

services of varying values. In order to make people easy to purchase an item or services

with different range of value, money must be divisible. The smaller the divisions, the better

it is. (https://www.tutor2u.net/economics/reference/characteristics-and-functions-of-

money )
The structure of Central Bank Negara Malaysia

Bank Negara Malaysia (BNM) of Malaya Ordinance 1959 (CBO) which established the

BNM was enforced on January 26, 1959. This Central Bank of Malaysia is a statutory body. The

establishment of BNM in 1959 can be fundamentally attributed to the recognition then for the need

for deliberate management of the money and credit situation in the country.

The organization structure of Bank Negara Malaysia is by the Chief Executive Officer

which is the Governor. Next, the Governor is helped and assisted by two Deputy Governors and

eight Assistant Governors. For instance, since May 2000, Bank Negara Malaysia is led by Tan Sri

Dr. Zeti Akhtar Aziz and her group, who together provide a clear strategic blueprint for the long

term development of the bank. Now, Bank Negara Malaysia is managed by Governor named

Muhammad bin Ibrahim. Then, there are 36 departments or units in the bank and most of them are

organized into eight divisions, where each Assistant Governor including a General Manager, being

responsible for one.

(http://www.bnm.gov.my/index.php?ch=en_about&pg=en_thebank&ac=50&lang=en )
Conclusion

As the conclusion, The Central Bank of Malaysia which is the one and only Bank Negara

Malaysia (BNM) is very crucial for a country especially in the development aspect. This is because

the ultimate function of BNM is to promote monetary and financial stability as it aimed of

providing a conducive environment in order to sustain the growth of economy in Malaysia.

Moreover, it has a monetary policy viewpoint which is to maintain the price stability while keep

supporting the economy growth. In addition, BNM also responsible for financial system stability

and oversees the nations payment system infrastructure which emphasize on the efficiency and

security of the financial systems. The Bank Negara Malaysia is managed by a team that lead by

Governor as the Chief Executive Officer.

In the economist aspect, money defined as something that serves as a medium of exchange,

a unit of accounting and a store of value. During the past, money not really important as they used

system barter in order to obtain any goods. But, this sytem has many negative side as it is

complicated to measure goods to be exchange with something else because it has no specific value

for each goods. Therefore, the barter system is no longer used in this era. This is influenced by the

existing of money. Thus, it has many characteristics in order to make it considered as money. For

instance, transportability, durability, divisibility and others.