Match the following list I with list II for the impact of demonetisation-
| LIST 1 |
LIST 2 |
| (A) Public sector wealth | (I) Bank deposits increased |
| (B) Private wealth | (II) Declined since some high demonetised notes were not returned |
| (C) Tax collection | (III) Rise because of increased disclosure |
| (D) Money/Interest rates | (IV) No effect |
Choose the correct answer from the options given below:
Answer & explanation
Correct answer: option 1
The correct answer is option 1- A-IV, B-II, C-III, D-I.
| LIST 1 |
LIST 2 |
| (A) Public sector wealth | (IV) No effect |
| (B) Private wealth | (II) Declined since some high demonetised notes were not returned |
| (C) Tax collection | (III) Rise because of increased disclosure |
| (D) Money/Interest rates | (I) Bank deposits increased |
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 |