Question

State whether the following statement is true or false.

Token coins are coins whose face value is greater than their intrinsic value. 

Options

• True

• False

Answer 1

The above statement is correct. Face value of token coins is the value which is mentioned on the coin. On the other hand, intrinsic value of token coins refers to the value of the metal which a token coin is made of. Since token coins are made up of cheap metals, in case of token coins, the face value is greater than their intrinsic value.