Write short notes on the following:
Standard and Token coins.

Solution

Standard and Token Coins. Standard coins refer to those coins whose face (printed) value is equal to its intrinsic value. Intrinsic value refers to the value of the metal the coin is made of and face value refers to the value marked on the face of the coin. For example, if value of the metal used in a five rupee coin is equal to five rupees, it will be called a standard coin and recognised as full-bodied money. It is also called commodity value of money.
Full-bodied money is the money whose value as a commodity (of which it is made of) for non-monetary purposes is as great as its value as money.
Token coins (or token money) refers to money whose face value is much greater than its intrinsic value. All Indian coins like those of र 5, र 2, र 1, etc. are token coins since their value as money is far above the value of metal contained in the coins. Likewise money value of a five hundred rupee note is token money. These are made of inferior metals like nickel, copper, aluminium, etc. Thus token coins are economical as they cost less than their market value. Token money is also called money value of money.

Some More Questions From Money And Banking Chapter

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Money And Banking

Write short notes on the following:
Standard and Token coins.

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