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In simple terms: Think of UTXO as some coins in your pocket. ikf you have a bigger fiat bill of 10 bucks and you pay me with 1buck, I will give you back 4 coins of 1buck or one of 4bucks and you put it into another pocket.

see in Electrum is displayed as "coins" tab

So you get to choose what kind of UTXOs to return to your recipient? Thanks for the explanation

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with specific scripts could be possible but usually wallet apps are doing this process more easily for the user,

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