Standard coins and Token coins
Answers
Answer:
Standard CoinsToken CoinsStandard coins are those whose face value is equal to the intrinsic value.Token coins are those whose face value is more than its intrinsic value.It is made up of precious metalsIt is made up of cheaper metals
Answer:
Standard Coin:
1. It is the principal coin of a nation.
2. It is a full-bodied coin. Its face-value is equal to its intrinsic value.
3. Standard coins are made of gold or silver of a well-defined weight, purity and fineness.
4. Standard coins enjoy free-coinage as the mind is open for the public for getting their precious metals minted into standard coins.
5. Standard coins possess the status of unlimited legal tender, i.e. no one can refuse to accept value if paid in standard coins in any quantity.
Token coin
1. It is the subsidiary coin of a nation.
2. It is not full-bodied coin. The intrinsic value is less than its face-value.
3. Token coins are made of inferior metals such as nickel, copper, aluminium, etc.
4. Token coins don’t possess the attrebute of free-coinage. Public can’t get the metals converted into coins.
5. Token coins don’t possess this status. They are only limited legal tender, i.e., no one can be compelled to accept them beyond a certain limit. Lower denomination coains (such as those of Rs. 1, Rs. 2 and Rs. 5) in India can’t be forced on recipients beyond a fixed proportion of the total payment.