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Question
Distinguish between
Convertible paper money and inconvertible paper money
Distinguish Between
Solution
| Basis of difference | Convertible paper money | Inconvertible paper money |
| 1. Definition | It can be defined as the currency notes which are converted into standard money on demand by the issuing authority. | It can be defined as the money which is not convertible into standard money on demand. |
| 2. Backed by | It is backed by metallic reserves and government securities. | It is not entirely backed by metallic reserves. |
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Money - Store of Value
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