Question 34
Money and InflationWhich of the following best describes token money?
- A.Money in the vaults of commercial banks
- B.Currency and coins in circulation
- C.Money with face value higher than its material content
- D.Coins and notes made of poor quality materials
Show the answer and explanation
Answer: C (Money with face value higher than its material content)
Explanation
Token money is money whose face value is greater than the value of what it is made of.