Question

Why does the Government print only a certain number of paper
notes, and not as many as it likes arbitrarily?​

Answer 1

Answer:

IF THE GOVERNMENT STARTED PRINTING PAPER NOTES ARBITRARILY, THEN THERE ARE CHANCES THAT MANY OR SOME OF THE NOTES MIGHT NOT BE USED BECAUSE THERE IS A PARTICULAR LIMIT FOR STORING OF NOTES IN ATMs AND OTHER PLACES WHERE NOTES ARE USED.

AND MOREOVER THERE IS ALSO A FIXED LIMIT ON THE EXPENDITURE FOR PRINTING PAPER NOTES (COST OF BUYING PAPER PULP, LABOUR CHARGES, ELECTRIC BILLS AND SO ON). SO THE GOVERNMENT LIMITS THE NUMBER OF PAPER NOTES TO BE PRINTED.

HOPE IT HELPS YOU.