Hey,
Many a time, landlords and sellers before finalizing a property deal ask for token money. Even car sellers ask for the same when you book a car you like. This amount is usually drastically less than the actual sale price. To make things easy for you, I will explain what is token money in this comment. Keep reading to know more.
Token money meaning
:
It is notes or coins that are issued by the government yet the face value is more than their intrinsic value. It is the amount of money that is paid by the buyer upon the verbal commitment of the sale. This money acts as a reassurance that the sale will be completed and the remaining amount will be given to the seller.
In case, the buyer does not complete the transaction, the seller is required to forfeit the token money. Until and unless there is a notarized agreement in place that states otherwise. As the cost of producing token money is less than the face value.
Indian Money :Have you ever wondered what type of money is an Indian rupee? It is a mix of both standard money and token money. Economists across the globe have classified money into four different types. These are commercial money, fiduciary money, fiat money, and commodity money.
This is all from my end on what is token money. I hope the answer cleared all your doubts.
Read more :How to Transfer Money from Credit Card to Bank Account?
What is legal tender money?
Can nominee withdraw money from bank?
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What is token money ?
Sumit
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3 Year
2022-05-09T10:46:20+00:00 2022-05-09T10:46:22+00:00Comment
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