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Standard XII
Economics
Question

A token money is that unit of currency __________.
  1. which is out of circulation
  2. the face value of which is much more than its intrinsic value
  3. the face value of which is less than its intrinsic value
  4. which is privately printed and circulated to take care of temporary crisis of small change

A
the face value of which is less than its intrinsic value
B
which is out of circulation
C
the face value of which is much more than its intrinsic value
D
which is privately printed and circulated to take care of temporary crisis of small change
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Solution
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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 five hundred rupee note in India has a very low commodity value as compared to its face value which is Rs.500.

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