1.

Distinguish between:Convertible paper money and inconvertible paper money

Answer»
Basis of difference Convertible paper moneyInconvertible paper money
1. DefinitionIt 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 no convertible into standard money on demand.
2. Backed byIt is backed by metallic reserves and government securities.It is not entirely backed by metallic reserves.


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