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omeli [17]
3 years ago
6

Advantage and dis advantage of demonetization​

Social Studies
1 answer:
In-s [12.5K]3 years ago
5 0

Answer:

Advantages

Increased Savings – As a result of demonetization, people will tend to deposit their cash in the bank rather than at home. This will help them save more. Lower lending rates – With currency demonetization, money moves from people to banks and financial institutions. Thus, there is a better circulation of money.

DISADVANTAGES

The biggest disadvantage of demonetisation has been the chaos and frenzy it created among common people initially. Everyone was rushing to get rid of demonetised notes while inadequate supply of new notes affected the day to day budgets of citizens.

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