What was the primary aim of demonetization?
Answer & explanation
Correct answer: option 3
The correct answer is option 3- Curbing corruption and illegal activities.
Demonetisation refers to the process of stripping a currency unit of its status as legal tender. In other words, it involves the withdrawal of a currency from circulation, effectively rendering it unusable for transactions.
The aim of demonetisation was to curb corruption, counterfeiting the use of high denomination notes for illegal activities; and especially the accumulation of ‘black money’ generated by income that has not been declared to the tax authorities.