Divisibility
Topic: Money: From Barter to Digital Currency · NCERT: Class 7, Ch 11 "From Barter to Money"
Meaning
Divisibility is whether an object can be split into smaller parts without losing its value. Good money must be divisible, so that small payments and large payments can both be made. Barter often fails this test. Many goods lose their use or value when they are cut into pieces. Money solves the problem by coming in small units, such as coins and low-value notes.
Example
A farmer owns one spare ox but only wants a sweater. He cannot give away "part of an ox" for it, because cutting up the ox destroys its value. With money, he can sell the ox and pay exactly the sweater's price, keeping the rest.
Don't confuse with
- Denomination: divisibility is the property of being split into small units. Denominations are the actual units in which coins and notes are issued (₹1, ₹5, ₹100 and so on).