$100 Bill Discussion
The one hundred dollars bill is the common currency in America, and it could also be endangered. There are various efforts across different countries to eliminate the high-value notes, and the $ 100 is targeted. Financial markets are crucial in the efficiency of an economy, and demonetization affects it negatively (Manu & Gattani, 2018, 62). It could lead to the withdrawal of investors their capital while others withdraw due to lack of funds. It decreases the purchasing power, which in turn affects the assets of the investment companies like real estates, vehicles, among others. The decrease in the people’s purchasing power, therefore, leads to a reduction in the stock process, which affects the companies as well as investors (Sarkar, 2018). Lastly, it could also lead to a decrease in bank interests on fixed deposits as well as the loan’s rates.
The note can be inconvenient, and one would have to ask for permission before paying for services in restaurants, supermarkets, among others. In some stores, they do not accept the note, and this causes a lot of inconvenience to clients. However, people have mixed emotions regarding the note, with some feeling these notes symbolize the wealth and success of the country. Eliminating it would mean enable people to use other convenient forms of payment like debit cards, prepaid cards, credit cards, as well as digital cryptocurrencies (Rani, 2016, 400). This will make trading easy, and it will also benefit countries.
I feel like the high-value currency like the 100 dollars cause more harm than benefits in the country. Demonetization will prevent will also prevent criminal activities in the country since it will eliminate activities like tax evasion and corruption facilitated by money laundering in the country. Moreover, illegal businesses like drugs-related are conducted easily since it is convenient to handle huge sums of money in such denominations. Therefore demonetization might have effects initially in markets, but the situation will stabilize, and things will get back to normal.