DEMONETISATION Meaning and
Definition
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Demonetisation is a term used to describe an economic policy implemented by a government or monetary authority to withdraw the status of legal tender from a particular form of currency or denomination. This policy involves the pronouncement or legislation that declares existing currency notes or coins as no longer being valid as a medium of exchange or means of payment. As a result, these invalidated currency units cannot be used for transactions and are usually replaced with new currency or replaced with alternative forms of payment such as electronic transactions or digital currencies.
The primary objective of demonetisation is to combat various economic issues like black money, corruption, terrorism financing, or counterfeiting by rendering illegal and invalid any cash holdings not properly accounted for. Besides these motivations, demonetisation may also be employed to counter inflation, discourage cash hoarding, spur economic growth, or promote a shift towards a cashless economy.
The implementation of demonetisation can have far-reaching consequences on the economy and the general public. It can cause temporary disruption, inconvenience, or a shortage of liquidity, especially if there is inadequate availability of the new currency or alternative modes of payment. Furthermore, it can lead to changes in spending patterns, financial transactions, and economic activities as individuals and businesses adjust to the new currency regime.
Overall, demonetisation is a policy tool employed by governments to bring about significant changes in economic and financial systems, primarily aimed at addressing various issues like unaccounted wealth, corruption, or curbing inflation, among others.
Common Misspellings for DEMONETISATION
- semonetisation
- xemonetisation
- cemonetisation
- femonetisation
- remonetisation
- eemonetisation
- dwmonetisation
- dsmonetisation
- ddmonetisation
- drmonetisation
- d4monetisation
- d3monetisation
- denonetisation
- dekonetisation
- dejonetisation
- deminetisation
- demknetisation
- demlnetisation
- dempnetisation
Etymology of DEMONETISATION
The word "demonetisation" is derived from the combination of two words: "demonetize" and "isation" (or "ization" in American English).
The term "demonetize" originated from the Latin word "moneta" meaning "money". When a currency is demonetized, it means that specific forms of money or currency are no longer recognized as legal tender or are removed from circulation.
The addition of the "-isation" suffix to "demonetize" indicates the process or action of making something no longer considered as money. Therefore, "demonetisation" refers to the act or process of demonetizing a particular currency or form of money.
Similar spelling words for DEMONETISATION
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