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