Question

Features of demonetization

Answer 1

elimination of fake currency, reduction of lending rates, attack on Hawala transactions, tax collection, money collection, tax compliance, controlling inflation etc.

Answer 2

Answer:

Explanation:

(i) Change in currency It is the act of stripping or discontinuing a currency unit of its legal status by government.

(ii) Contingent Success or failure of demonetisation is dependent upon various factors.

(iii) Objective The objective of demonctisation can be curbing corruption, fake currency, illegal activity and making cashless economy.

(iv) Crunches Generally after demonetisation, people face cash crunches for a shorter period.