Question

Write the differences between standard money and token money
(any four).​

Answer 1

Answer:

money - a current exchange medium in the form of coins and banksnote; coins and banknotes collectively

token money-money where the face value of notes or coins is unrelated to the value of the material which they are composed

Answer 2

While standard measures all other forms, token money is limited.

• The differences between both are -

1. In the case of standard money, the face value and intrinsic value are same, whereas in token face value exceeds intrinsic value
2. Standard is made of high quality materials such as gold or silver, while token is made up of little less standard material and includes only coins.
3. Standard is often considered as short term, while token is long term.
4. Standard is the unit of account against which all other currencies in the country are measured. The token, on the other hand, is not susceptible to free coinage.