Common Sense Evaluation

Often held but never touched, always wet but never rusts, often bites but seldom bit, to use me well you must have wit.

What am I?

There is a common English word that is nine letters long. Each time you remove a letter from it, it still remains an English word- from nine letters right down to a single letter.

What is the original word, and what are the words that it becomes after removing one letter at a time?

I have a green nose, three red mouths, and four purple ears.

What am I?