Question

GBSSS No 1 Rajouri Garden Extn

School ID 1515006

Unit Test Subject English Class 12th

A. Read the following passage carefully and answer

the questions that follow: 5x2=10

Seeking to move towards a cashless economy, the government

has proposed income tax benefits for people making payments

through credit or debit cards, besides doing away with

transaction charges on the purchase of petrol, gas and rail

tickets with plastic money. This is the first serious effort to

tackle the predominance of cash in India’s economy. India is a

hugely cash-dependent economy. The RBI and commercial

banks annually spend around Rs 21,000 crore in currency

operations costs while the citizens of Delhi alone spend Rs 9.1

crore and 60 lakh hours in collecting cash.

The scale of this burden is unique to India considering that it is

among the most cash-intensive economies with a cash-to-GDP

ratio of 12%, almost four times as much as other markets such

as Brazil (3.93%), Mexico (5.3%) and South Africa (3.73%).

Moreover, cash transactions and black money are directly linked,

since a cash trail is nigh impossible to track. As such, electronic

transactions and the ease of audit they afford should make the

government’s job much easier in terms of curbing illegal

transactions.

What the switchover to payments by credit and debit cards

means is that the payer must have money in the bank. This can

be facilitated through a greater recourse to direct cash transfer

of subsidies to banks. But, those who avail of this may not

belong to the section that pays income tax. Given that less than

three per cent of our population pays income tax, transactions

by plastic cards may not amount to much. But, the scene ischanging. For instance, payments by mobiles have grown from

just 860 transactions in November 2010 to 4.4 million in August

2014. With the spread of Internet and expansion of e-

commerce, online payments are fast catching on among the

middle class. These are mostly cashless transactions. It is also

necessary to remember that a move towards a cashless

economy will eliminate the cost of printing and distributing cash.

If to these expenses are added the cost of storage and

maintaining the currencies in the over 60,000 ATMs, the outlay

becomes prohibitive. The answer is a buoyant economy that will

reduce the numbers of those who still regard cash as the only

reliable legal tender.

1. According to the author of the passage, what type of

economy is India?

a) Dependent Economy

b) Developed Economy

c) Cash-intensive Economy

d) Labour-intensive Economy

2. According to the passage, which country after India can

be considered to be a Cash-dependent economy?

a) Brazil

b) Mexico

c) South Africa

d) Brazil or South Africa

3. According to the author of the passage, which of the

following is directly linked?

a) Credit transactions and black money

b) Cash transactions and black money

c) Cash and Credit Transactions

d) Black and White Money​

Answer 1

3a,2b,1a,,he

Explanation:

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