Question

Demonetisation had direct impact on a) Social environment b) Political environment c) Economic environment d) None of the above​

Answer 1

Answer:

c)- Economic Environment

Explanation:

We all could see its impact-

printing of new notes require

paper and for producing that paper there is a need to cut down the trees thereby impacting the environment tremendously.

Answer 2

Answer : (C) Economic environment

Demonetisation had direct impact on economic environment.

Explanation :

The correct answer is c) Economic environment.

Demonetisation had a direct impact on the economic environment as it resulted in changes in monetary policy and the potential impact on GDP growth. The withdrawal of high-value currency notes led to a shortage of cash and caused disruptions in the economy, particularly in sectors that rely heavily on cash transactions such as agriculture, retail and small businesses. The demonetisation move resulted in the reduction of GDP growth, increase in inflation, job losses and a decline in consumer spending.

However, it also should be noted that the demonetization had an indirect impact on the social and political environment as well. The inconvenience caused to the general public due to shortage of cash and long queues at banks and ATMs affected the social environment. The government's decision to demonetise and the potential political fallout affected the political environment.

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