Question

The existence of a parallel economy (black money) ___________.
A) makes economy more competitive B) makes the monetary policies less effective C) ensures a better distribution of income and wealth D) ensures increasing productive investment

Answer 1

Answer: (b)

Explanation:The existence Black money lead to the creation of a parallel economy. It also makes the monetary policies less effective as the government cannot account properly account for the money which is not formally included in the system.

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