Token money usually means minor or subsidiary coins, but is actually any distinguishable material which circulates as a substitute for a small amount of money and whose value as money exceeds its commodity value. Token money is generally needed to facilitate exchanges involving small amounts of money and for that reason, its acceptability is often limited to a maximum sum. Token money differs from fiat money in that it is, within limits, a claim for money proper and the amount outstanding is usually limited to the quantity needed for settling small amounts. Token money is a money-substitute and so far as its monetary value exceeds its commodity value, it is a fiduciary medium.
- Percy L. Greaves, Jr. "Mises Made Easier ", 1974. Referenced 2014-08-24.