Practice Box No. 3.2: Demonetisation (3.6) - Money and Banking

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9 questions

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3 questions · about 2 min · pass mark 70%. Hints available.
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6 sample questions

Question 1.
What was the main reason for demonetisation in India?
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Think about illegal financial activities.
Question 2.
What denominations were withdrawn during demonetisation?
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Consider the highest notes in circulation before the reform.
3Question 3.
What was one of the main goals of demonetisation in India?
- To increase cash circulation
- To eliminate black money
- To enforce higher taxes
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Consider why the government took such a bold step.
4Question 4.
Demonetisation in India involved the withdrawal of which currency notes?
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Think about the two highest denominations.
Question 5.
Discuss the complex economic impacts of demonetisation on small vs. large businesses.
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Consider how different scales of business manage cash flow.
Question 6.
Evaluate the psychological effects of demonetisation on the population's trust in government financial policies.
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Think about how fear and hope play in public sentiment.

5 more questions in this section. Enroll free to practise them all.