As we know, counterfeit money is duplicates or imitation currency produced illegally in a country. The use or production of it amounts to fraud.
It is believed that counterfeiting is as old as currency itself. Even coins were duplicated in ancient times, with base metals instead of pure gold and silver.
As time passed by, newer methods were devised, and counterfeit became a big threat to countries across the globe.
One of the most dangerous effects of money duplication is the reduction in the real value of money.
Yet another is the increase in price of commodities. Suppose you are a trader and you get fake currencies from your customers. You take it to a bank, and find out that they are not real. You may be innocent, but you are not going to get the money reimbursed.
Increase in prices, is also caused by the fact that there is an abundance of money being circulated in financial markets-even though some of them are duplicates. In such conditions, the economy of a country starts to collapse. In India, the government has taken various measures to control counterfeit, the latest being the withdrawal of Rs 500 and Rs 1000 notes.
