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The fare valu...

Question

The fare value is less than its intrinsic value in case of token money.

A

True

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B

False

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Solution

The correct option is B False
Token money consist of token coins which are such coins whose face value is greater than is commodity value. In other words, its face value is greater than its intrinsic(commodity) value. For example- the ten rupee coin in India has a very low commodity value as compared to its face value which is 10 rupees.

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Q. State whether the following statement is True or False.
In the case of token coins, the face value is less than their intrinsic value.

Q. Fill in the blanks with appropriate alternatives given in the brackets.
1) Medium of exchange is __________ function of money. (primary/secondary/contingent/ additional)
2) In the case of __________ coins, intrinsic value is less than their face value. (token/full bodied/representative/standard)
3) The most liquid asset is __________. (cheque/money/shares/debentures)
4) Introduction of __________ removed difficulties of barter. (metals/bank/money/shares)
5) In the initial stage of development, __________ was used. (credit money /paper notes/ metallic coins/commodity money)

Q. In the case of __________ coins, intrinsic value is less than their face value.

Q. Token coins are coins whose face value is greater than their intrinsic value.

Q. State whether the following statements are true or false.
1. Metallic coins are easily portable than paper notes.
2. Token coins are coins whose face value is greater than their intrinsic value.
3. Money facilitates estimation of national income.
4. A cheque is a fiat money.
5. Money increases productivity of capital.

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