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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.

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Demonetisation is referred to as the process of stripping a currency unit of its status to be used as a legal tender. In simple words, demonetisation is the process by which the demonetised notes cease to be accepted as legal currency for any kind of transaction.
The withdrawal of currencies or other valuables by the central bank to be used as the legal tender in the nation. Such currencies either turn into scrap or a deposited in the banks and replaced by the new currencies. Governments of many countries across the world have taken this drastic measure to curb black money and stop the counterfeiting of currency notes.
 
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