In the Case of Token Coins, Intrinsic Value is Less than Their Face Value. - Economics

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MCQ
True or False

In the case of token coins, intrinsic value is less than their face value.

Options

  • True

  • False

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Solution

True, in case of token coins intrinsic value is less than their face value.

Explanation:
Intrinsic value of token coins refers to the value of the metal which a token coin is made of. On the other hand, face value is the value which is mentioned on the coin. Since token coins are made up of cheap metals, in case of token coins, the intrinsic value is less than their face value.

Concept: Money - Store of Value
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2015-2016 (March)
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