Distinguish between full bodied money and token coins.
Answers
The difference between full bodied money and token coins can be explained as follows:
Full bodied money:
• Meaning: It refers to that physical money whose intrinsic value is exactly equal to the face value of that money.
• Example: One dollar gold coin worth is equal to one dollar itself. This means that if one dollar gold is melted and sold in the market, one will get the amount of one dollar only.
Token coins:
• Meaning: It refers to that physical money whose intrinsic value is not equal to the face value of that money.
• Example: One dollar metal coin worth is not equal to one dollar itself. This means that if one dollar metal coin is melted and sold in the market, one will not get the amount of one dollar but very little.
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