Question

Demonetisation introduction with advantage and disadvantage

Answer 1

Answer:

Demonetization of currency means discontinuity of the said currency from circulation and replacing it with a new currency.

Advantages:

1. Black money tracking.

2. Reduction in illegal activity.

3. Tax payment and jan dhan yojna.

Disadvantages:

1. Cost of currency destruction.

2. Creation of chaos and frenzy among common people.

3. Cannot fight parallel economy and eliminate black money completely.