What is demonetisation of money and causes or effective and useful
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Answer:
defination :Demonetization is the act of stripping a currency unit of its status as legal tender. It occurs whenever there is a change in national currency. The current form or forms of money is pulled from circulation and retired, often to be replaced with new notes or coins.
its causes are :Some say demonetisation broke the back of rural economy where cash was dominated and disrupted supply chains. The note-ban impact weighed heavily on the economy. The government, however, has claimed that demonetization has had positive impacts on the economy.
its useful :Increased Savings – As a result of demonetization, people will tend to deposit their cash in the bank rather than at home. This will help them save more. Lower lending rates – With currency demonetization, money moves from people to banks and financial institutions. Thus, there is a better circulation of money.
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