Question

Read the passage and answer the questions that follow.

Demonetization refers to an economic policy where a certain currency 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 8 November, 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 citizenry

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 and 500 rupee

notes.

The government’s goal was to combat India’s thriving underground economy on several fronts:

eradicate counterfeit currency, fight tax evasion (only 1% of the population 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 hike 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. The biggest gainers were mobile wallet

companies that offered easy transactions through a large network of partners. Alibaba-backed Paytm

saw a sevenfold increase in overall traffic. Prepaid cash cards were another option that the customers

found useful. Other alternatives were mobile payment systems linked to e-commerce businesses like

Ola Money, FreeCharge, Flipkart Wallet.

Answer the following questions briefly:

(i) What is meant by demonetization? Who was the Prime Minister at the time of demonetize

announcement.

(ii) When did the government demonetize the 500-and 1000-rupee notes?

(iii) What announcement did Prime Minister make on Nov. 8?

(iv) What did the government want to accomplish by the demonetization?

(v) When was a penalty of 200% imposed?

(vi) Explain the idiom, ‘brought to book’.

(vii) Find a word in the passage which means ‘to provide or supply’.

(viii) Which were the alternate payment methods available for Indians post demonetization?

(ix) How Demonetisation had a severe impact on the gold market.

(x) Who were the biggest gainers? Also Give examples.

(xi) How black money accumulated before demonetization.​

Answer 1

Answer:

1- demonetization refers to an economic policy where a certain currency unit leases to be used as a legal tender

prime minister Narendra modi was the prime minister at the time of demonetize

2- On 8th November 2016

3-demonetize the 500 and 1000 notes

4-The government’s goal was to combat India’s thriving underground economy on several fronts

5- 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.

Answer 2

6. reveal someone dis honesty