Commerce Exam > Commerce Questions > Read the news report given below and answer ...
Start Learning for Free
Read the news report given below and answer the question that follow:
In a 40 minute long speech Prime Minister Narendra Modi announced the demonetization of existing notes of ₹500 and ₹1,000 during a televised address on Tuesday evening.
Modi announced that the notes of ₹500 and ₹1,000 “will not be legal tender from midnight tonight” and these will be “just worthless pieces of paper. The PM also urged people to ‘join this mahayojna against the ills of corruption.
Here is a guide for you explaining everything about the move.
What is demonetization of currency?
Demonetization for us means that the Reserve Bank of India has withdrawn the old `500 and ₹1,000 notes as an official mode of payment. According to Investopedia, demonetization is the act of stripping a currency unit of its status as legal tender.
What was the reason?
The reasoning given by Modi was: (A) To tackle black money in the economy. (B) To lower the cash circulation in the country which “is directly related to corruption in our country, “ according to PM Modi. (C) To eliminate fake currency and dodgy funds which have been used by terror groups to fund terrorism in India. (D) The move is estimated to scoop out more than ₹5 lakh crore black money from the economy, according to Baba Ramdev, a staunch Modi supporter.
Q. What is not the benefit of demonetisation:
- a)To lower the cash circulation.
- b)To tackle black money in the economy.
- c)To eliminate fake currency
- d)Growth of revenue in States and Union Territories
Correct answer is option 'D'. Can you explain this answer?
| FREE This question is part of | Download PDF Attempt this Test |
Verified Answer
Read the news report given below and answer the question that follow:...
Increased Savings – As a result of demonetization, people will tend to deposit their cash in the bank rather than at home. This will help them save more. Lower lending rates – With currency demonetization, money moves from people to banks and financial institutions. Thus, there is a better circulation of money.
View all questions of this test
Most Upvoted Answer
Read the news report given below and answer the question that follow:...
Understanding the Benefits of Demonetization
Demonetization, as announced by Prime Minister Narendra Modi, aimed to address several critical issues in the Indian economy. However, not all proposed benefits materialized as expected.
Reasons for Demonetization
- To lower cash circulation: The initiative aimed to reduce the amount of cash in circulation, making it harder for black money to thrive.
- To tackle black money: The move was designed to flush out unaccounted wealth from the economy, thereby curbing corruption.
- To eliminate fake currency: By withdrawing high denomination notes, the government sought to combat counterfeit currency that funded illegal activities, including terrorism.
Lack of Growth in Revenue
While the above points reflect perceived benefits of demonetization, the assertion that it would lead to the "growth of revenue in States and Union Territories" is not supported by evidence.
- Short-term Impact: In the immediate aftermath, many businesses faced cash shortages, leading to reduced transactions and slower economic activity.
- Revenue Generation Challenges: The expected increase in tax revenue from the formalization of the economy did not materialize as rapidly as anticipated, leaving states and territories with limited fiscal benefits.
- Long-term Considerations: Although some argued revenue growth would come in the long run, the short-term disruptions hindered immediate fiscal benefits for state governments.
In conclusion, while demonetization aimed to tackle pressing issues like black money and counterfeit currency, the anticipated growth in revenue for States and Union Territories did not align with the reality, marking it as a notable exception among the stated benefits.
Demonetization, as announced by Prime Minister Narendra Modi, aimed to address several critical issues in the Indian economy. However, not all proposed benefits materialized as expected.
Reasons for Demonetization
- To lower cash circulation: The initiative aimed to reduce the amount of cash in circulation, making it harder for black money to thrive.
- To tackle black money: The move was designed to flush out unaccounted wealth from the economy, thereby curbing corruption.
- To eliminate fake currency: By withdrawing high denomination notes, the government sought to combat counterfeit currency that funded illegal activities, including terrorism.
Lack of Growth in Revenue
While the above points reflect perceived benefits of demonetization, the assertion that it would lead to the "growth of revenue in States and Union Territories" is not supported by evidence.
- Short-term Impact: In the immediate aftermath, many businesses faced cash shortages, leading to reduced transactions and slower economic activity.
- Revenue Generation Challenges: The expected increase in tax revenue from the formalization of the economy did not materialize as rapidly as anticipated, leaving states and territories with limited fiscal benefits.
- Long-term Considerations: Although some argued revenue growth would come in the long run, the short-term disruptions hindered immediate fiscal benefits for state governments.
In conclusion, while demonetization aimed to tackle pressing issues like black money and counterfeit currency, the anticipated growth in revenue for States and Union Territories did not align with the reality, marking it as a notable exception among the stated benefits.
Attention Commerce Students!
To make sure you are not studying endlessly, EduRev has designed Commerce study material, with Structured Courses, Videos, & Test Series. Plus get personalized analysis, doubt solving and improvement plans to achieve a great score in Commerce.
|
Explore Courses for Commerce exam
|
|
Similar Commerce Doubts
Top Courses for CommerceView all
Read the news report given below and answer the question that follow:In a 40 minute long speech Prime Minister Narendra Modi announced the demonetization of existing notes of ₹500 and ₹1,000 during a televised address on Tuesday evening.Modi announced that the notes of ₹500 and ₹1,000 “will not be legal tender from midnight tonight” and these will be “just worthless pieces of paper. The PM also urged people to ‘join this mahayojna against the ills of corruption.Here is a guide for you explaining everything about the move.What is demonetization of currency?Demonetization for us means that the Reserve Bank of India has withdrawn the old `500 and ₹1,000 notes as an official mode of payment. According to Investopedia, demonetization is the act of stripping a currency unit of its status as legal tender.What was the reason?The reasoning given by Modi was: (A) To tackle black money in the economy. (B) To lower the cash circulation in the country which “is directly related to corruption in our country, “ according to PM Modi. (C) To eliminate fake currency and dodgy funds which have been used by terror groups to fund terrorism in India. (D) The move is estimated to scoop out more than ₹5 lakh crore black money from the economy, according to Baba Ramdev, a staunch Modi supporter.Q. What is not the benefit of demonetisation:a)To lower the cash circulation.b)To tackle black money in the economy.c)To eliminate fake currencyd)Growth of revenue in States and Union TerritoriesCorrect answer is option 'D'. Can you explain this answer?
Question Description
Read the news report given below and answer the question that follow:In a 40 minute long speech Prime Minister Narendra Modi announced the demonetization of existing notes of ₹500 and ₹1,000 during a televised address on Tuesday evening.Modi announced that the notes of ₹500 and ₹1,000 “will not be legal tender from midnight tonight” and these will be “just worthless pieces of paper. The PM also urged people to ‘join this mahayojna against the ills of corruption.Here is a guide for you explaining everything about the move.What is demonetization of currency?Demonetization for us means that the Reserve Bank of India has withdrawn the old `500 and ₹1,000 notes as an official mode of payment. According to Investopedia, demonetization is the act of stripping a currency unit of its status as legal tender.What was the reason?The reasoning given by Modi was: (A) To tackle black money in the economy. (B) To lower the cash circulation in the country which “is directly related to corruption in our country, “ according to PM Modi. (C) To eliminate fake currency and dodgy funds which have been used by terror groups to fund terrorism in India. (D) The move is estimated to scoop out more than ₹5 lakh crore black money from the economy, according to Baba Ramdev, a staunch Modi supporter.Q. What is not the benefit of demonetisation:a)To lower the cash circulation.b)To tackle black money in the economy.c)To eliminate fake currencyd)Growth of revenue in States and Union TerritoriesCorrect answer is option 'D'. Can you explain this answer? for Commerce 2024 is part of Commerce preparation. The Question and answers have been prepared according to the Commerce exam syllabus. Information about Read the news report given below and answer the question that follow:In a 40 minute long speech Prime Minister Narendra Modi announced the demonetization of existing notes of ₹500 and ₹1,000 during a televised address on Tuesday evening.Modi announced that the notes of ₹500 and ₹1,000 “will not be legal tender from midnight tonight” and these will be “just worthless pieces of paper. The PM also urged people to ‘join this mahayojna against the ills of corruption.Here is a guide for you explaining everything about the move.What is demonetization of currency?Demonetization for us means that the Reserve Bank of India has withdrawn the old `500 and ₹1,000 notes as an official mode of payment. According to Investopedia, demonetization is the act of stripping a currency unit of its status as legal tender.What was the reason?The reasoning given by Modi was: (A) To tackle black money in the economy. (B) To lower the cash circulation in the country which “is directly related to corruption in our country, “ according to PM Modi. (C) To eliminate fake currency and dodgy funds which have been used by terror groups to fund terrorism in India. (D) The move is estimated to scoop out more than ₹5 lakh crore black money from the economy, according to Baba Ramdev, a staunch Modi supporter.Q. What is not the benefit of demonetisation:a)To lower the cash circulation.b)To tackle black money in the economy.c)To eliminate fake currencyd)Growth of revenue in States and Union TerritoriesCorrect answer is option 'D'. Can you explain this answer? covers all topics & solutions for Commerce 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Read the news report given below and answer the question that follow:In a 40 minute long speech Prime Minister Narendra Modi announced the demonetization of existing notes of ₹500 and ₹1,000 during a televised address on Tuesday evening.Modi announced that the notes of ₹500 and ₹1,000 “will not be legal tender from midnight tonight” and these will be “just worthless pieces of paper. The PM also urged people to ‘join this mahayojna against the ills of corruption.Here is a guide for you explaining everything about the move.What is demonetization of currency?Demonetization for us means that the Reserve Bank of India has withdrawn the old `500 and ₹1,000 notes as an official mode of payment. According to Investopedia, demonetization is the act of stripping a currency unit of its status as legal tender.What was the reason?The reasoning given by Modi was: (A) To tackle black money in the economy. (B) To lower the cash circulation in the country which “is directly related to corruption in our country, “ according to PM Modi. (C) To eliminate fake currency and dodgy funds which have been used by terror groups to fund terrorism in India. (D) The move is estimated to scoop out more than ₹5 lakh crore black money from the economy, according to Baba Ramdev, a staunch Modi supporter.Q. What is not the benefit of demonetisation:a)To lower the cash circulation.b)To tackle black money in the economy.c)To eliminate fake currencyd)Growth of revenue in States and Union TerritoriesCorrect answer is option 'D'. Can you explain this answer?.
Read the news report given below and answer the question that follow:In a 40 minute long speech Prime Minister Narendra Modi announced the demonetization of existing notes of ₹500 and ₹1,000 during a televised address on Tuesday evening.Modi announced that the notes of ₹500 and ₹1,000 “will not be legal tender from midnight tonight” and these will be “just worthless pieces of paper. The PM also urged people to ‘join this mahayojna against the ills of corruption.Here is a guide for you explaining everything about the move.What is demonetization of currency?Demonetization for us means that the Reserve Bank of India has withdrawn the old `500 and ₹1,000 notes as an official mode of payment. According to Investopedia, demonetization is the act of stripping a currency unit of its status as legal tender.What was the reason?The reasoning given by Modi was: (A) To tackle black money in the economy. (B) To lower the cash circulation in the country which “is directly related to corruption in our country, “ according to PM Modi. (C) To eliminate fake currency and dodgy funds which have been used by terror groups to fund terrorism in India. (D) The move is estimated to scoop out more than ₹5 lakh crore black money from the economy, according to Baba Ramdev, a staunch Modi supporter.Q. What is not the benefit of demonetisation:a)To lower the cash circulation.b)To tackle black money in the economy.c)To eliminate fake currencyd)Growth of revenue in States and Union TerritoriesCorrect answer is option 'D'. Can you explain this answer? for Commerce 2024 is part of Commerce preparation. The Question and answers have been prepared according to the Commerce exam syllabus. Information about Read the news report given below and answer the question that follow:In a 40 minute long speech Prime Minister Narendra Modi announced the demonetization of existing notes of ₹500 and ₹1,000 during a televised address on Tuesday evening.Modi announced that the notes of ₹500 and ₹1,000 “will not be legal tender from midnight tonight” and these will be “just worthless pieces of paper. The PM also urged people to ‘join this mahayojna against the ills of corruption.Here is a guide for you explaining everything about the move.What is demonetization of currency?Demonetization for us means that the Reserve Bank of India has withdrawn the old `500 and ₹1,000 notes as an official mode of payment. According to Investopedia, demonetization is the act of stripping a currency unit of its status as legal tender.What was the reason?The reasoning given by Modi was: (A) To tackle black money in the economy. (B) To lower the cash circulation in the country which “is directly related to corruption in our country, “ according to PM Modi. (C) To eliminate fake currency and dodgy funds which have been used by terror groups to fund terrorism in India. (D) The move is estimated to scoop out more than ₹5 lakh crore black money from the economy, according to Baba Ramdev, a staunch Modi supporter.Q. What is not the benefit of demonetisation:a)To lower the cash circulation.b)To tackle black money in the economy.c)To eliminate fake currencyd)Growth of revenue in States and Union TerritoriesCorrect answer is option 'D'. Can you explain this answer? covers all topics & solutions for Commerce 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Read the news report given below and answer the question that follow:In a 40 minute long speech Prime Minister Narendra Modi announced the demonetization of existing notes of ₹500 and ₹1,000 during a televised address on Tuesday evening.Modi announced that the notes of ₹500 and ₹1,000 “will not be legal tender from midnight tonight” and these will be “just worthless pieces of paper. The PM also urged people to ‘join this mahayojna against the ills of corruption.Here is a guide for you explaining everything about the move.What is demonetization of currency?Demonetization for us means that the Reserve Bank of India has withdrawn the old `500 and ₹1,000 notes as an official mode of payment. According to Investopedia, demonetization is the act of stripping a currency unit of its status as legal tender.What was the reason?The reasoning given by Modi was: (A) To tackle black money in the economy. (B) To lower the cash circulation in the country which “is directly related to corruption in our country, “ according to PM Modi. (C) To eliminate fake currency and dodgy funds which have been used by terror groups to fund terrorism in India. (D) The move is estimated to scoop out more than ₹5 lakh crore black money from the economy, according to Baba Ramdev, a staunch Modi supporter.Q. What is not the benefit of demonetisation:a)To lower the cash circulation.b)To tackle black money in the economy.c)To eliminate fake currencyd)Growth of revenue in States and Union TerritoriesCorrect answer is option 'D'. Can you explain this answer?.
Solutions for Read the news report given below and answer the question that follow:In a 40 minute long speech Prime Minister Narendra Modi announced the demonetization of existing notes of ₹500 and ₹1,000 during a televised address on Tuesday evening.Modi announced that the notes of ₹500 and ₹1,000 “will not be legal tender from midnight tonight” and these will be “just worthless pieces of paper. The PM also urged people to ‘join this mahayojna against the ills of corruption.Here is a guide for you explaining everything about the move.What is demonetization of currency?Demonetization for us means that the Reserve Bank of India has withdrawn the old `500 and ₹1,000 notes as an official mode of payment. According to Investopedia, demonetization is the act of stripping a currency unit of its status as legal tender.What was the reason?The reasoning given by Modi was: (A) To tackle black money in the economy. (B) To lower the cash circulation in the country which “is directly related to corruption in our country, “ according to PM Modi. (C) To eliminate fake currency and dodgy funds which have been used by terror groups to fund terrorism in India. (D) The move is estimated to scoop out more than ₹5 lakh crore black money from the economy, according to Baba Ramdev, a staunch Modi supporter.Q. What is not the benefit of demonetisation:a)To lower the cash circulation.b)To tackle black money in the economy.c)To eliminate fake currencyd)Growth of revenue in States and Union TerritoriesCorrect answer is option 'D'. Can you explain this answer? in English & in Hindi are available as part of our courses for Commerce.
Download more important topics, notes, lectures and mock test series for Commerce Exam by signing up for free.
Here you can find the meaning of Read the news report given below and answer the question that follow:In a 40 minute long speech Prime Minister Narendra Modi announced the demonetization of existing notes of ₹500 and ₹1,000 during a televised address on Tuesday evening.Modi announced that the notes of ₹500 and ₹1,000 “will not be legal tender from midnight tonight” and these will be “just worthless pieces of paper. The PM also urged people to ‘join this mahayojna against the ills of corruption.Here is a guide for you explaining everything about the move.What is demonetization of currency?Demonetization for us means that the Reserve Bank of India has withdrawn the old `500 and ₹1,000 notes as an official mode of payment. According to Investopedia, demonetization is the act of stripping a currency unit of its status as legal tender.What was the reason?The reasoning given by Modi was: (A) To tackle black money in the economy. (B) To lower the cash circulation in the country which “is directly related to corruption in our country, “ according to PM Modi. (C) To eliminate fake currency and dodgy funds which have been used by terror groups to fund terrorism in India. (D) The move is estimated to scoop out more than ₹5 lakh crore black money from the economy, according to Baba Ramdev, a staunch Modi supporter.Q. What is not the benefit of demonetisation:a)To lower the cash circulation.b)To tackle black money in the economy.c)To eliminate fake currencyd)Growth of revenue in States and Union TerritoriesCorrect answer is option 'D'. Can you explain this answer? defined & explained in the simplest way possible. Besides giving the explanation of
Read the news report given below and answer the question that follow:In a 40 minute long speech Prime Minister Narendra Modi announced the demonetization of existing notes of ₹500 and ₹1,000 during a televised address on Tuesday evening.Modi announced that the notes of ₹500 and ₹1,000 “will not be legal tender from midnight tonight” and these will be “just worthless pieces of paper. The PM also urged people to ‘join this mahayojna against the ills of corruption.Here is a guide for you explaining everything about the move.What is demonetization of currency?Demonetization for us means that the Reserve Bank of India has withdrawn the old `500 and ₹1,000 notes as an official mode of payment. According to Investopedia, demonetization is the act of stripping a currency unit of its status as legal tender.What was the reason?The reasoning given by Modi was: (A) To tackle black money in the economy. (B) To lower the cash circulation in the country which “is directly related to corruption in our country, “ according to PM Modi. (C) To eliminate fake currency and dodgy funds which have been used by terror groups to fund terrorism in India. (D) The move is estimated to scoop out more than ₹5 lakh crore black money from the economy, according to Baba Ramdev, a staunch Modi supporter.Q. What is not the benefit of demonetisation:a)To lower the cash circulation.b)To tackle black money in the economy.c)To eliminate fake currencyd)Growth of revenue in States and Union TerritoriesCorrect answer is option 'D'. Can you explain this answer?, a detailed solution for Read the news report given below and answer the question that follow:In a 40 minute long speech Prime Minister Narendra Modi announced the demonetization of existing notes of ₹500 and ₹1,000 during a televised address on Tuesday evening.Modi announced that the notes of ₹500 and ₹1,000 “will not be legal tender from midnight tonight” and these will be “just worthless pieces of paper. The PM also urged people to ‘join this mahayojna against the ills of corruption.Here is a guide for you explaining everything about the move.What is demonetization of currency?Demonetization for us means that the Reserve Bank of India has withdrawn the old `500 and ₹1,000 notes as an official mode of payment. According to Investopedia, demonetization is the act of stripping a currency unit of its status as legal tender.What was the reason?The reasoning given by Modi was: (A) To tackle black money in the economy. (B) To lower the cash circulation in the country which “is directly related to corruption in our country, “ according to PM Modi. (C) To eliminate fake currency and dodgy funds which have been used by terror groups to fund terrorism in India. (D) The move is estimated to scoop out more than ₹5 lakh crore black money from the economy, according to Baba Ramdev, a staunch Modi supporter.Q. What is not the benefit of demonetisation:a)To lower the cash circulation.b)To tackle black money in the economy.c)To eliminate fake currencyd)Growth of revenue in States and Union TerritoriesCorrect answer is option 'D'. Can you explain this answer? has been provided alongside types of Read the news report given below and answer the question that follow:In a 40 minute long speech Prime Minister Narendra Modi announced the demonetization of existing notes of ₹500 and ₹1,000 during a televised address on Tuesday evening.Modi announced that the notes of ₹500 and ₹1,000 “will not be legal tender from midnight tonight” and these will be “just worthless pieces of paper. The PM also urged people to ‘join this mahayojna against the ills of corruption.Here is a guide for you explaining everything about the move.What is demonetization of currency?Demonetization for us means that the Reserve Bank of India has withdrawn the old `500 and ₹1,000 notes as an official mode of payment. According to Investopedia, demonetization is the act of stripping a currency unit of its status as legal tender.What was the reason?The reasoning given by Modi was: (A) To tackle black money in the economy. (B) To lower the cash circulation in the country which “is directly related to corruption in our country, “ according to PM Modi. (C) To eliminate fake currency and dodgy funds which have been used by terror groups to fund terrorism in India. (D) The move is estimated to scoop out more than ₹5 lakh crore black money from the economy, according to Baba Ramdev, a staunch Modi supporter.Q. What is not the benefit of demonetisation:a)To lower the cash circulation.b)To tackle black money in the economy.c)To eliminate fake currencyd)Growth of revenue in States and Union TerritoriesCorrect answer is option 'D'. Can you explain this answer? theory, EduRev gives you an
ample number of questions to practice Read the news report given below and answer the question that follow:In a 40 minute long speech Prime Minister Narendra Modi announced the demonetization of existing notes of ₹500 and ₹1,000 during a televised address on Tuesday evening.Modi announced that the notes of ₹500 and ₹1,000 “will not be legal tender from midnight tonight” and these will be “just worthless pieces of paper. The PM also urged people to ‘join this mahayojna against the ills of corruption.Here is a guide for you explaining everything about the move.What is demonetization of currency?Demonetization for us means that the Reserve Bank of India has withdrawn the old `500 and ₹1,000 notes as an official mode of payment. According to Investopedia, demonetization is the act of stripping a currency unit of its status as legal tender.What was the reason?The reasoning given by Modi was: (A) To tackle black money in the economy. (B) To lower the cash circulation in the country which “is directly related to corruption in our country, “ according to PM Modi. (C) To eliminate fake currency and dodgy funds which have been used by terror groups to fund terrorism in India. (D) The move is estimated to scoop out more than ₹5 lakh crore black money from the economy, according to Baba Ramdev, a staunch Modi supporter.Q. What is not the benefit of demonetisation:a)To lower the cash circulation.b)To tackle black money in the economy.c)To eliminate fake currencyd)Growth of revenue in States and Union TerritoriesCorrect answer is option 'D'. Can you explain this answer? tests, examples and also practice Commerce tests.
|
|
Explore Courses for Commerce exam
|
|
Suggested Free Tests
Signup for Free!
Signup to see your scores go up within 7 days! Learn & Practice with 1000+ FREE Notes, Videos & Tests.
|
© EduRev
|
Education Revolution
|
Follow Us
|
Signup to see your scores
go up
within 7 days!
within 7 days!
Takes less than 10 seconds to signup