Can You Explain The Concept Of Metallic Money, Standard Money And Token Money?


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Muhammad Abdullah786 Profile
Metallic money consists of coins, made of gold, silver, copper or nickel. Metallic currency varies in weight, fineness and in value. All metallic coins are stamped with a dye with a view to avoid chopping and abrasion against clipping or filling.Metallic money is full bodied money or token. The full bodied money is that whose face value is equal to the value of the metal contained in it. The government generally retains a monopoly of the issue of full bodied coins and defines the gold value of the monetary unit.

Standard money:
Standard money represents the money of account. By money of account is meant the monetary unit in term of which, the prices debt and other transactions are expressed.

Token money:
The money is subsidiary money. Its face value the value printed on it is higher than its intrinsic value, the value of the metallic contents. It is generally limited legal tender money.
The total amount of the coins in a country depends upon the needs of the people. The minting of token coins in the country has the following advantages.Token coins are of small denominations and so they meet the needs of the people for payment in small amount.They can be easily converted at face value with the other currency of the country.

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