some points about demonitization
Answers
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.
The opposite of demonetization is remonetization, in which a form of payment is restored as legal tender.
Explanation:
Removing the legal tender status of a unit of currency is a drastic intervention into an economy because it directly effects 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.
. Definition The ban of currency .
. Usually done to reduce corruption .
. For example
In India demonization was done on November 2016 of currency notes of 500&1000 rupes respectively by Shri Damodar das Narendra Modi ji .
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