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What are Convertible and inconvertible paper money? It is just the curr. notes which can further be converted into small denom. currency is convertible ex . 100 's note in form of 20, 10 and 50 etc. and which can't be are inconvertible like 1 rupee note as 50 paise isn't longer in use?
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What are Convertible and inconvertible paper money? It is just the cur...
Convertible and Inconvertible Paper Money
Convertible paper money refers to currency notes that can be converted into smaller denominations of the same currency. In contrast, inconvertible paper money cannot be converted into smaller denominations.
Convertible Paper Money
Convertible paper money is easily exchangeable for smaller denominations of the same currency. This type of currency helps in carrying out transactions of smaller amounts. For example, a 100-rupee note can be easily converted into 10, 20, or 50-rupee notes, depending on the availability of smaller denominations.
Features of Convertible Paper Money:
- It is easily exchangeable for smaller denominations.
- It facilitates transactions of smaller amounts.
- It helps in maintaining the liquidity of the cash in the economy.
- It is widely accepted in the market.
Inconvertible Paper Money
Inconvertible paper money cannot be converted into smaller denominations of the same currency. These types of currency notes are usually discontinued due to the unavailability of smaller denominations. For example, the 1-rupee note was discontinued in India as the 50-paise coin was no longer in use.
Features of Inconvertible Paper Money:
- It cannot be converted into smaller denominations.
- It is difficult to use for transactions of smaller amounts.
- It causes inconvenience to the public.
- It is not widely accepted in the market.
Conclusion
In conclusion, convertible paper money is more convenient for carrying out transactions of smaller amounts. It helps in maintaining the liquidity of cash in the economy and is widely accepted in the market. Inconvertible paper money causes inconvenience to the public and is not widely accepted in the market.
Convertible paper money refers to currency notes that can be converted into smaller denominations of the same currency. In contrast, inconvertible paper money cannot be converted into smaller denominations.
Convertible Paper Money
Convertible paper money is easily exchangeable for smaller denominations of the same currency. This type of currency helps in carrying out transactions of smaller amounts. For example, a 100-rupee note can be easily converted into 10, 20, or 50-rupee notes, depending on the availability of smaller denominations.
Features of Convertible Paper Money:
- It is easily exchangeable for smaller denominations.
- It facilitates transactions of smaller amounts.
- It helps in maintaining the liquidity of the cash in the economy.
- It is widely accepted in the market.
Inconvertible Paper Money
Inconvertible paper money cannot be converted into smaller denominations of the same currency. These types of currency notes are usually discontinued due to the unavailability of smaller denominations. For example, the 1-rupee note was discontinued in India as the 50-paise coin was no longer in use.
Features of Inconvertible Paper Money:
- It cannot be converted into smaller denominations.
- It is difficult to use for transactions of smaller amounts.
- It causes inconvenience to the public.
- It is not widely accepted in the market.
Conclusion
In conclusion, convertible paper money is more convenient for carrying out transactions of smaller amounts. It helps in maintaining the liquidity of cash in the economy and is widely accepted in the market. Inconvertible paper money causes inconvenience to the public and is not widely accepted in the market.
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What are Convertible and inconvertible paper money? It is just the curr. notes which can further be converted into small denom. currency is convertible ex . 100 's note in form of 20, 10 and 50 etc. and which can't be are inconvertible like 1 rupee note as 50 paise isn't longer in use?
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What are Convertible and inconvertible paper money? It is just the curr. notes which can further be converted into small denom. currency is convertible ex . 100 's note in form of 20, 10 and 50 etc. and which can't be are inconvertible like 1 rupee note as 50 paise isn't longer in use? for UPSC 2024 is part of UPSC preparation. The Question and answers have been prepared according to the UPSC exam syllabus. Information about What are Convertible and inconvertible paper money? It is just the curr. notes which can further be converted into small denom. currency is convertible ex . 100 's note in form of 20, 10 and 50 etc. and which can't be are inconvertible like 1 rupee note as 50 paise isn't longer in use? covers all topics & solutions for UPSC 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for What are Convertible and inconvertible paper money? It is just the curr. notes which can further be converted into small denom. currency is convertible ex . 100 's note in form of 20, 10 and 50 etc. and which can't be are inconvertible like 1 rupee note as 50 paise isn't longer in use?.
What are Convertible and inconvertible paper money? It is just the curr. notes which can further be converted into small denom. currency is convertible ex . 100 's note in form of 20, 10 and 50 etc. and which can't be are inconvertible like 1 rupee note as 50 paise isn't longer in use? for UPSC 2024 is part of UPSC preparation. The Question and answers have been prepared according to the UPSC exam syllabus. Information about What are Convertible and inconvertible paper money? It is just the curr. notes which can further be converted into small denom. currency is convertible ex . 100 's note in form of 20, 10 and 50 etc. and which can't be are inconvertible like 1 rupee note as 50 paise isn't longer in use? covers all topics & solutions for UPSC 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for What are Convertible and inconvertible paper money? It is just the curr. notes which can further be converted into small denom. currency is convertible ex . 100 's note in form of 20, 10 and 50 etc. and which can't be are inconvertible like 1 rupee note as 50 paise isn't longer in use?.
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