which of the following best describes token money?
Answer Details
Token money refers to currency and coins that are in circulation and have a face value that is higher than their intrinsic or material value. This means that the value of the metal or paper used to create the currency or coin is less than the value assigned to it by the government.
For example, a paper bill may only cost a few cents to produce, but its face value might be $10. Similarly, a coin made of cheap metal may only be worth a few cents, but it may have a face value of $1.
Token money is different from commodity money, which has intrinsic value based on the material it is made from, such as gold or silver. Token money is valuable because people trust that they can exchange it for goods and services, even though the value of the material itself is relatively low.
Overall, is the correct answer to the question because it accurately describes token money as having a face value that exceeds its material value.