Asked by Sheryl Kambuni on Apr 27, 2024
Verified
A 2005 quarter is called token money because:
A) it is legal tender.
B) its metal value exceeds its face value.
C) there is less than a quarter's worth of metal in it.
D) it can be used in the subway.
E) it is generally not accepted in exchange.
Token Money
Money whose face value exceeds its cost of production, typically involving coins and paper money not backed by a commodity.
Legal Tender
The coins or banknotes that must be accepted if offered in payment of a debt.
- Recognize the characteristics and functions of various forms of money, including token money and digital money (debit cards, credit cards).
Verified Answer
MB
Manon BlaisMay 01, 2024
Final Answer :
C
Explanation :
A 2005 quarter is called token money because it has less than a quarter's worth of metal in it. Its face value is 25 cents, but the cost of producing the coin is less than 25 cents due to the lower amount of metal used in its production. This makes it similar to a token, which has a set value but is not worth its weight in metal.
Learning Objectives
- Recognize the characteristics and functions of various forms of money, including token money and digital money (debit cards, credit cards).