token money: meaning, definition, pronunciation and examples
rareformal/academic
Quick answer
What does “token money” mean?
Money that has little or no intrinsic value but is accepted as a medium of exchange due to government backing or social convention.
Audio
Pronunciation
Definition
Meaning and Definition
Money that has little or no intrinsic value but is accepted as a medium of exchange due to government backing or social convention.
In economics, it refers to currency not backed by a physical commodity, and broadly, any symbolic or nominal payment.
Dialectal Variation
British vs American Usage
Differences
Minimal; term is used similarly in both varieties.
Connotations
Neutral in both, with a technical or economic focus.
Frequency
Slightly more common in British academic texts due to historical monetary discussions, but overall low frequency.
Grammar
How to Use “token money” in a Sentence
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Collocations
Examples
Examples of “token money” in a Sentence
verb
British English
- The bank tokenised the currency to reduce production costs.
American English
- The government tokenized the currency to cut expenses.
adverb
British English
- He contributed tokenly, without any real commitment.
American English
- She paid in a token manner, knowing it was insufficient.
adjective
British English
- It was merely a token payment to acknowledge the debt.
American English
- It was just a token gesture to show goodwill.
Usage
Meaning in Context
Business
Refers to currency used in transactions that isn't backed by physical assets, important in financial planning.
Academic
Studied in monetary theory, economic history, and as a key concept in understanding modern currencies.
Everyday
Rarely used; people typically refer to 'cash', 'coins', or 'paper money' instead.
Technical
Denotes money whose face value exceeds its material worth, dependent on legal tender status and institutional trust.
Vocabulary
Synonyms of “token money”
Vocabulary
Antonyms of “token money”
Watch out
Common Mistakes When Using “token money”
- Using 'token money' to mean any money, when it specifically implies lack of intrinsic value.
- Confusing it with 'commodity money' or 'specie'.
FAQ
Frequently Asked Questions
Token money has little intrinsic value and relies on trust or law, while commodity money is made of valuable materials like gold or silver.
Yes, in most contemporary economies, paper money and coins are token money as they are not backed by physical commodities.
Yes, if public trust collapses or in cases of hyperinflation, token money can lose its value entirely.
Digital currencies can be seen as a form of token money if they lack intrinsic value and rely on network trust, though they differ in decentralization and regulation.
Money that has little or no intrinsic value but is accepted as a medium of exchange due to government backing or social convention.
Token money is usually formal/academic in register.
Token money: in British English it is pronounced /ˈtəʊkən ˈmʌni/, and in American English it is pronounced /ˈtoʊkən ˈmʌni/. Tap the audio buttons above to hear it.
Learning
Memory Aids
Mnemonic
Think of a 'token' as a symbol, so token money is symbolic money—it represents value but isn't valuable in itself.
Conceptual Metaphor
Money as a token or symbol of value, representing trust and authority.
Practice
Quiz
What best describes token money?