What is the impact of demonetization in relation to real estate?
Answer & explanation
Correct answer: option 1
The correct answer is option 1- Prices declined.
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 |