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Simple English definitions for legal terms
demonetization
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A quick definition of demonetization:
Term: DEMONETIZATION
Definition: Demonetization means that a metal that was used as money is not used anymore. It is like taking away the value of that metal as money. For example, in the United States, gold was demonetized, which means it was not used as money anymore.
A more thorough explanation:
Definition: Demonetization refers to the act of withdrawing the status of legal tender from a currency unit or ceasing to use a particular metal as money.
Example: In 2016, the Indian government demonetized all ₹500 and ₹1,000 banknotes, which accounted for 86% of the country's cash in circulation. This move was aimed at curbing corruption, black money, and counterfeit currency.
Explanation: The example illustrates how demonetization involves the discontinuation of a particular currency unit as a legal tender. In this case, the Indian government withdrew the status of legal tender from ₹500 and ₹1,000 banknotes, rendering them useless for transactions. This move aimed to tackle issues such as corruption, black money, and counterfeit currency, which were prevalent in the country's economy.