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Which of the following best describe token money?

Economics
JAMB 2025

Which of the following best describe token money?

  • A. Currency and coins in circulation
  • B. Coins and notes made of poor quality materials
  • C. Money in the vault of commercial banks
  • D. Money with face value higher than its material content
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Correct Answer: Option D
Explanation

Token money is best described as money with face value higher than its material content. This means that the value of the
material (like paper or metal) used to make the money is less than the value that the money represents. For example, a $10 bill
does not cost $10 to produce, but it is accepted as being worth $10.


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