As per NCERT data, currency in circulation in India was Rs 16,63,463 crore in 2015-16 and Rs 13,35,266 crore in 2016-17, the year of demonetisation. By about what percentage did it fall?
Answer & explanation
Correct answer: option 3
The correct answer is Option (3) → About 20 per cent
Given:
Currency in circulation, 2015-16 = Rs 16,63,463 crore
Currency in circulation, 2016-17 = Rs 13,35,266 crore
Percentage fall = (fall ÷ value in the earlier year) × 100
Fall = 16,63,463 − 13,35,266 = 3,28,197
Percentage fall = (3,28,197 ÷ 16,63,463) × 100 = 19.7, about 20 per cent
Dividing the fall by the 2016-17 value gives about 25 per cent. A fall is always measured on the earlier value.
Note: This question rests on a data table that sits after the chapter text. Such tables are part of NCERT too, and exam questions can come from them, so give them a slow read.
NCERT (2026-27): “Box No. 3.2: Demonetisation Demonetisation was a new initiative taken by the Government of India in November 2016 to tackle the problem of corruption, black money, terrorism and circulation of fake currency in the economy. Old currency notes of Rs 500, and Rs 1000 were no longer legal tender. New currency notes in the denomination of Rs 500 and Rs 2000 were launched. The public were advised to deposit old currency notes in their bank account till 31 December 2016 without any declaration and upto 31March 2017 with the RBI with declaration …” “… There were long queues outside banks and ATM booths. The shortage of currency in circulation had an adverse impact on the economic activities. However, things improved with time and normalcy returned.” |