Question

Token money is that currency of which the face value is _________.

• A. higher than its intrinsic value
• B. less than its intrinsic value
• C. equal to its intrinsic value
• D. none

Answer 1

Answer: (A)

higher than its intrinsic value

Token money refers to that money whose face value is greater than its commodity value. In other words, the value of such money is higher than the value of commodity used to make it. For example- the hundred rupee note in India has a very low commodity value as compared to its face value which is Rs. 100.