Why is it important for money to be durable and in limited supply?

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1261410

2026-07-27 11:45

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Durability is crucial for money because it ensures that it can withstand physical wear and tear, allowing it to maintain its form and function over time. Limited supply is essential to preserve the value of money; if too much money is created, it can lead to inflation, eroding purchasing power. Together, these characteristics help establish trust in the currency, facilitating trade and economic stability.

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