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Distinguish Between Full Bodied Money and Token Coins - Economics

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Question

Distinguish between 
Full bodied money and token coins 

Distinguish Between
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Solution

Basis of difference Full bodied money Token coins
1. Definition Full bodied money refers to that money whose intrinsic value (value of the metal) is equal to the face value of the engraving on the currency. Token coins are those whose face value is more than its intrinsic value.
2. Made up of It is made up of precious metals. It is made up of cheaper metals.
3. Examples Gold coins, silver coins etc. Aluminium coins, nickel coins etc.
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Chapter 11: Money - Exercise 3 [Page 101]

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Micheal Vaz Economics [English] 12 Standard HSC
Chapter 11 Money
Exercise 3 | Q 1.3 | Page 101
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