Which of the following is an impact of demonetisation?
A) Private wealth declined
B) Digital transactions amongst new users increased
C) Public sector wealth decreased
D) Real estate Prices declined
E) Decline in cash transactions
Choose the correct answer from the options given below.
Answer & explanation
Correct answer: option 1
The correct answer is option 1- A, B, D and E only.
There is no effect on public sector wealth.
IMPACT OF DEMONETISATION
| 1. | Money/Interest rates | i. Decline in cash transactions ii. Bank deposits increased iii. Increase in financial savings |
| 2. | Private wealth | Declined since some high demonetised notes were not returned and real estate prices fell |
| 3. | Public sector wealth | No effect |
| 4. | Digitisation | Digital transactions amongst new users (RuPay/AEPS) increased |
| 5. | Real estate | Prices declined |
| 6. | Tax collection | Rise in income tax collection because of increased disclosure |