---
entity_slug: agio_of_bank_money
evaluator: null
evaluated_at: '2026-02-23T00:25:16.998391'
overall_score: 4.8
scores:
- name: definition_precision
  value: 5.0
  max_value: 5.0
  rationale: The definition is highly precise and non-circular, clearly distinguishing
    the agio as the specific premium/discount differential between bank money and
    circulating currency. It captures a distinct financial mechanism rather than a
    vague concept.
- name: source_grounding
  value: 5.0
  max_value: 5.0
  rationale: This entity is directly grounded in Smith's detailed discussion of the
    Amsterdam bank in Book IV, Chapter 3, where he explicitly analyzes how the agio
    functions and varies based on currency quality differences. The concept emerges
    clearly from the source text without interpretation.
- name: domain_placement
  value: 5.0
  max_value: 5.0
  rationale: The "Exchange" domain assignment is perfectly appropriate, as the agio
    represents a core exchange rate mechanism between different forms of money. This
    is fundamentally about currency exchange relationships rather than production,
    trade, or other economic domains.
- name: vsm_relevance
  value: 4.0
  max_value: 5.0
  rationale: This entity maps well to S2 (coordination/anti-oscillation) as Smith
    describes how banks manipulate the agio to prevent stock-jobbing and maintain
    currency stability. It represents a regulatory mechanism that coordinates between
    different monetary systems.
- name: explanatory_value
  value: 5.0
  max_value: 5.0
  rationale: The agio provides significant explanatory power by illuminating the structural
    mechanism through which different qualities of money relate to each other in exchange
    systems. It reveals how monetary institutions manage currency stability through
    price differentials rather than merely naming a surface phenomenon.
---

# Evaluation: Agio Of Bank Money

## definition_precision — 5.0 / 5.0

The definition is highly precise and non-circular, clearly distinguishing the agio as the specific premium/discount differential between bank money and circulating currency. It captures a distinct financial mechanism rather than a vague concept.

## source_grounding — 5.0 / 5.0

This entity is directly grounded in Smith's detailed discussion of the Amsterdam bank in Book IV, Chapter 3, where he explicitly analyzes how the agio functions and varies based on currency quality differences. The concept emerges clearly from the source text without interpretation.

## domain_placement — 5.0 / 5.0

The "Exchange" domain assignment is perfectly appropriate, as the agio represents a core exchange rate mechanism between different forms of money. This is fundamentally about currency exchange relationships rather than production, trade, or other economic domains.

## vsm_relevance — 4.0 / 5.0

This entity maps well to S2 (coordination/anti-oscillation) as Smith describes how banks manipulate the agio to prevent stock-jobbing and maintain currency stability. It represents a regulatory mechanism that coordinates between different monetary systems.

## explanatory_value — 5.0 / 5.0

The agio provides significant explanatory power by illuminating the structural mechanism through which different qualities of money relate to each other in exchange systems. It reveals how monetary institutions manage currency stability through price differentials rather than merely naming a surface phenomenon.