Learning Through Questions (LTQs) : Set: 1 - Demonitisation

Question 1 : Which of the following causes signifies/signify the need for demonitisation in India?

a) High volume of currency transactions in the economy.
b) High Cash-GDP ratio (12-13%).
c) Black money to the tune of 1/5th of GDP.
d) All of the above.

Question 2: Which of the following is/are the possible impacts of demonitisation on the economy of India?

a) Deflationary shocks.
b) Dent in job market.
c) Both a and b
d) Neither a nor b

Question 3 : Which of the following is not one of the objectives to initiate the demonitisation drive in India?

a) To curb black money and corruption.
b) To boost consumption demand.
c) To discourage cash-led system in the economy.
d) To combat inflation.

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Answers

1) a
2) c
3) b