What is demonetization? Explain its concept. please help immediately
Solution:
Demonetization is the concept of removing or elimination existing legal currency from the circulation. Such currency are either disposed as scrap or deposited back in banks for the exchange of new currency. Various countries took this step of demonetization to curb black money. It also helps in reducing corruption. In 2016, India also took this step by demonetised Rs 500 and Rs 1000 notes to curb black money.