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New Forms of Money

The value of ...

Question

The value of paper money is dependent on:

A

Intrinsic value

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B

Representative value

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C

Full bodied money value

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D

None of the above

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Solution

The correct option is B
Representative value

Value of paper money depends on the value of the metal money it represents, thus called representative money.

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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)
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