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What is demonetisation and it's features? …

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What is demonetisation and it's features? Explain

Posted by Vanee Verma 4 years, 5 months ago

CBSE > Class 12 > Business Studies

2 answers

Shalim Muzahid Marwadi 4 years, 5 months ago

Demonitisation is a process of banning a currency with a legal law of govt.

Yogita Ingle 4 years, 5 months ago

Demonetization is a process of stripping a currency unit of its status as a legal tender. In simple words, demonetized notes are no longer valid as legal currency. Usually, a new currency replaces the old currency unit/s.
Characteristics of demonetisation are:
(i) Change in currency It is the act of stripping or discontinuing a currency unit of its legal status by government.
(ii) Contingent Success or failure of demonetisation is dependent upon various factors.
(iii) Objective The objective of demonctisation can be curbing corruption, fake currency, illegal activity and making cashless economy.
(iv) Crunches Generally after demonetisation, people face cash crunches for a shorter period.

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This content has been hidden. One or more users have flagged this content as inappropriate. Once content is flagged, it is hidden from users and is reviewed by myCBSEguide team against our Community Guidelines. If content is found in violation, the user posting this content will be banned for 30 days from using Homework help section. Suspended users will receive error while adding question or answer. Question comments have also been disabled. Read community guidelines at https://mycbseguide.com/community-guidelines.html

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