What characteristics of money does gold and bonds possess?
i. Asset
ii. Not perishable
iii. Considerably lower storage costs
iv. Universal acceptability
v. Easy conversion to other commodities

i, ii, iii

The correct answer is option 1: i, ii, iii

Gold and bonds possess certain characteristics of money but do not fully function as money in a modern economy. Let’s analyze each characteristic:

1. Asset (i) - Correct

   • Both gold and bonds are financial assets that hold value and can be used for investment purposes.

2. Not perishable (ii) - Correct

   • Unlike consumable goods, gold and bonds do not deteriorate over time, making them durable assets.

3. Considerably lower storage costs (iii) - Correct

   • Gold and bonds require storage, but compared to perishable goods or physical commodities, their storage costs are relatively low.

4. Universal acceptability (iv) - Incorrect

   • While gold has historical acceptability, bonds are not universally accepted as a medium of exchange like money.

5. Easy conversion to other commodities (v) - Incorrect

   • Bonds, in particular, are not easily convertible into other goods without selling them first, unlike cash or digital money.