Finding out the fake currency is not an easy job. When the investigation agencies start investigating them it will take years to curb them completely. Maybe it is not possible to get rid of it completely because the circulation of fake money is done continuously by some set of individuals. Their primary goal will be to annihilate the economy of the nation or it can be due to political and economic rivals. If the investigating agencies catch a culprit who is engaged with these sorts of activity the individuals who are associated with circulating counterfeit money will hire another person to do that job. If the government tries to stop them from one end the culprits will start using another end.
When the fake currency is getting increased the real income will decrease. For eg., when you have 1000rs with you and in that you have two 100rs counterfeit cash then it will be a loss for you. You are the one who is losing 200rs. You will be losing hard-earned money without making any fault.
When the fake currencies increase then the individuals will also get scared to spend their money. Then this will affect the economy in a very bad manner. For eg., when you go to a shop to purchase anything exchange of currencies happens. Here unknowingly you might get a fake note. As explained in the previous point this will be a loss to you. When this happens to many people then the real money will lose its value in global markets.
When there is more currency circulating in the public then inflation increases. Always the ratio of production and the money circulating should be equal. In other words, the money circulating in the public should not cross the economic output because if the public has more money then they feel like buying new items. This leads to more demand. As the demand increases the production should also increase but here, in this case, the public has more money and everyone will start buying things once and for all and this leads to scarcity of goods, and when the scarcity increases the prices of commodities increase. This is called currency devaluation. Now the real game starts from here. Individuals will start buying cheaper products as they can’t afford high-priced products and other countries will make use of this opportunity by pumping their cheaper products into our market.
Businesses will get affected when the fake currency increases. It may be a small or a big business. Large organizations will have to deal with a tremendous problem. For eg., suppose if a transaction is taking place in the bank and the sum has a large amount of fake currency then the bank won’t repay or replace the fake currency with the original one. This will affect them without a doubt either quickly or over the long haul.
