Demonetisation of Features Demonetisation
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Answers
Explanation:
The following are the main features of Demonetisation:
(i) Elimination of Black Money: Black money is a household name in India. It refers to unaccounted money. Holders of black money avoid payment of tax on this money. By demonetizing high-value currency notes, the government wants to eliminate the stock of black unaccounted cash balances.
(ii) Eradication of Corruption: High-value currency notes are the commonly accepted medium or bribe. The government wants to strike at the root of corruption by banning these notes.
(iii) Elimination of Counterfeit Currency: A note ban would have implied the elimination of counterfeit currency. Counterfeit currency enhances money in circulation and contributes to an inflationary spiral. it destabilizes the economy
(iv) Money Laundering: Demonetisation is expected to check money laundering. It refers to the hidden transfer of funds across different regions of the country. With cash transactions coming to a grinding halt, demonetization hurt money laundering in a big way.
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The following are the main features of Demonetisation:
(i) Elimination of Black Money: Black money is a household name in India. It refers to unaccounted money. Holders of black money avoid payment of tax on this money. By demonetizing high-value currency notes, the government wants to eliminate the stock of black unaccounted cash balances.
(ii) Eradication of Corruption: High-value currency notes are the commonly accepted medium or bribe. The government wants to strike at the root of corruption by banning these notes.
(iii) Elimination of Counterfeit Currency: A note ban would have implied the elimination of counterfeit currency. Counterfeit currency enhances money in circulation and contributes to an inflationary spiral. it destabilizes the economy
(iv) Money Laundering: Demonetisation is expected to check money laundering. It refers to the hidden transfer of funds across different regions of the country. With cash transactions coming to a grinding halt, demonetization hurt money laundering in a big way.