Question

State one feature of demonetisation.

Hint:

Demonetisation is a powerful tool to combat corruption and black money in the economy, but its implementation needs to be done carefully to avoid economic disruption.

Answer 1

Step 1: Understand the concept of demonetisation.
Demonetisation is the process in which certain currency notes or coins are declared as no longer legal tender. It is typically used by governments to address issues related to the black economy, corruption, and counterfeit currency.
Step 2: Key feature of demonetisation.
One major feature of demonetisation is its aim to reduce black money. By invalidating high-denomination currency notes, it forces individuals to deposit or exchange their unaccounted wealth, which can be traced and taxed.
Step 3: Conclusion.
The primary aim of demonetisation is to reduce black money and counterfeit currency, which are detrimental to the economy.