If a coin is minted the material might cost less or more then the monetary value on it how are the governments assigning values to it?
In: Economics
they arent
the whole basis of currency is that all the parties involved agreed on the value of the token your trading with, in this case, Coins
the only reason coins are minted the way they are is because they need ot be made of durable enough alloy to not be perishable and a cheap enough alloy that it can be minted at under face value.
by itself it has no value, this is why if you mint your own coins they woudl be worthless.
however the ones your country’s treasury mints arent, they have the means ot back up their value and control the supply, so ppl will be willing to trade with it under the promise they will hold their value.
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