If a currency note is demonetized, it takes away the _____ of that currency.

legal tender-character

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exchange rate

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value

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none of the above

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Solution

The correct option is A legal tender-character
If a currency not is demonetized, it loses its legal value in the market due to which it no longer possess its legal-tender character. For example, When the Indian prime minister demonetized 500 and 1000 rupees denominations on 8th November 2016, it lost its legal tender character in the market.

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