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WAEC Economics 2015 Objective — Question 34

Question 34 of 50 from the West African Examinations Council (WAEC) Economics 2015 Objective paper, with the correct answer and a full explanation.

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Which of the following best describes token money?

  • A. Money in the vaults of commercial banks
  • B. Currency and coins in circulation
  • C. Money with face value higher than its material contentCorrect
  • D. Coins and notes made of poor quality materials

Explanation

Token money is money whose face (nominal) value is higher than the value of the material used to produce it, e.g. coins and notes.

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