methodology of Demonetization in brief
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Answer
Demonetization is the act of divesting a currency unit of its status as legal tender. It is a tool to handle black money in the economy by lowering the cash circulation in the country which is directly concerned with the corruption. It directly or indirectly influences the various sectors.
Answer:
Demonetization is the act of stripping a currency unit of its status as legal tender. It occurs whenever there is a change of national currency: The current form or forms of money is pulled from circulation and retired, often to be replaced with new notes or coins. Sometimes, a country completely replaces the old currency with new currency.
Understanding Demonetization
Removing the legal tender status of a unit of currency is a drastic intervention into an economy because it directly affects the medium of exchange used in all economic transactions. It can help stabilize existing problems, or it can cause chaos in an economy, especially if undertaken suddenly or without warning. That said, demonetization is undertaken by nations for a number of reasons.