Token money

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Token money is money whose face value exceeds its cost of production. Most modern coins used in circulation are token money, as are paper notes.

Value[edit]

Token money is also money whose face value exceeds its cost of production, i.e. the intrinsic value is lower than the extrinsic value. This means that the actual worth of a note or coin is much less than what we use it for. See fiat money and bullion. The cost of production of token money is less than its actual value.

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