Question

Read the following passage carefully and answer the questions that follow:

Demonetization refers to an economic policy where a certain unit leases to be used as a legal tender. It occurs

whenever there is a change in the national currency. The existing form or forms of money is pulled from

circulation and retired, to be replaced with new notes or coins. Sometimes, a country completely replaces the

old currency with new currency.

On November 8, 2016, the Indian Government decided to demonetize the 500 and 1000 rupee notes, the two

biggest denominations in its currency system. These notes accounted for 86% of the country’s circulating cash.

With little warning, India’s Prime Minister Narendra Modi announced to the citizen that these notes would be

rendered immediately ineffective with immediate effect. People were given time till the end of the year to

deposit or exchange them for newly introduced 2000 rupee or 500 rupee notes. The Government’s goal was to

combat India’s thriving underground economy counterfeit currency, fight tax evasion (only 1% of thepopulation pays taxes), eliminate black money accumulated from money laundering and terrorist –financing

activities, and to promote a cashless economy. Individuals and entities with huge sums of black money acquired

from parallel cash systems were forced to take their large denomination notes to a bank, and account for them

satisfactorily and submit proof if tax paid. If the owner could not provide proof of making any tax payments on

the cash, he possessed a penalty of 200% on the tax due was imposed.

Demonetisation had a severe impact on the gold market. The extraordinary demand for the yellow metal, made a

stiff hikes in the cost. However, the Government made it mandatory that every buyer had to submit his/her

PAN card details for purchases made. Erring jewelers were brought to book. Many Indians switched to

alternative payment methods.

Read the following questions carefully and answer the questions that follow-

1. Give the meaning of each as used in the passage. (One word or short phrase will be accepted).

(i) demonetization (ii) eliminate (iii) accumulated [3]

2. Answer the following questions in your own words:

(i) When did the Government demonetize the 500- and 1000 rupee notes? [1]

(ii) What did the Government want to accomplish by the demonetization? [2]

(iii) What was made mandatory by the Government on the gold market? [1]

(iv) Explain the idiom, “brought to book’. [​

Answer 1

Explanation:

I dont know if I know I definitely told you armyyyyyyyyyyyyyyyyyy