Unleash Your Understanding of Demonetization in India
27 Questions
2 Views

Choose a study mode

Play Quiz
Study Flashcards
Spaced Repetition
Chat to lesson

Podcast

Play an AI-generated podcast conversation about this lesson

Questions and Answers

What is the legal basis for demonetization in India?

  • Section 26(3) of the Reserve Bank of India Act, 1934
  • Section 26(4) of the Reserve Bank of India Act, 1934
  • Section 26(2) of the Reserve Bank of India Act, 1934 (correct)
  • Section 26(1) of the Reserve Bank of India Act, 1934

    • What is the test of proportionality referred to in the text?

  • Whether the benefits of demonetization are equal to the costs
  • Whether demonetization is necessary
  • Whether the benefits of demonetization outweigh the costs (correct)
  • Whether the costs of demonetization outweigh the benefits

    • What is one of the disadvantages mentioned in the text regarding demonetization?

  • Stabilization of Currency
  • Increase in tax base
  • Promotion of Digitization
  • Temporary Slowdown (correct)

    • Why did the RBI withdraw the 2000 rupee notes?

    <p>To meet immediate currency requirements after demonetization</p> Signup and view all the answers

    What is the exchange limit for Rs 2000 banknotes?

    <p>Rs 20,000 at a time</p> Signup and view all the answers

    What does the RBI's Clean Note Policy focus on?

    <p>Providing high-quality currency notes and coins</p> Signup and view all the answers

    What was the impact of the withdrawal of 2000 rupee notes on the economy, according to the RBI governor?

    <p>Boost in bank deposits and reduction in interest rates</p> Signup and view all the answers

    What is demonetization?

    <p>The act of stripping a currency unit of its status as legal tender</p> Signup and view all the answers

    What is the legal basis for demonetization in India?

    <p>Section 26(2) of the Reserve Bank of India Act, 1934</p> Signup and view all the answers

    According to the Supreme Court, what is the test of proportionality in the context of demonetization?

    <p>The test of whether the benefits of demonetization are significant enough to justify the costs</p> Signup and view all the answers

    What were some advantages of demonetization mentioned in the text?

    <p>All of the above</p> Signup and view all the answers

    What were some disadvantages of demonetization mentioned in the text?

    <p>All of the above</p> Signup and view all the answers

    What was the RBI's announcement regarding the Rs 2000 denomination banknotes?

    <p>The existing notes will remain legal tender</p> Signup and view all the answers

    What is the deadline for individuals to deposit or exchange the Rs 2000 denomination banknotes?

    <p>September 30, 2023</p> Signup and view all the answers

    What is the potential impact of demonetization on small businesses operating on thin profit margins?

    <p>All of the above</p> Signup and view all the answers

    What did the Supreme Court state about the demonetization of Rs 500 and Rs 1000 currency notes?

    <p>It was valid</p> Signup and view all the answers

    What did the Supreme Court say about the benefits of demonetization?

    <p>They were significant enough to justify the costs</p> Signup and view all the answers

    Why were the Rs 2000 banknotes introduced in 2016?

    <p>To meet the immediate currency requirements after the withdrawal of Rs 500 and Rs 1000 notes</p> Signup and view all the answers

    What is the current value of Rs 2000 banknotes in circulation as of March 31, 2023?

    <p>Rs 3.62 lakh crore</p> Signup and view all the answers

    What is the definition of a 'soiled note' according to RBI's Clean Note Policy?

    <p>A note which has become dirty due to normal wear and tear</p> Signup and view all the answers

    Why did the RBI withdraw all banknotes issued before 2005?

    <p>Due to their fewer security features as compared to banknotes printed after 2005</p> Signup and view all the answers

    What was the main objective of introducing Rs 2000 banknotes in 2016?

    <p>To meet the immediate currency requirements after the withdrawal of Rs 500 and Rs 1000 notes</p> Signup and view all the answers

    What is the exchange limit for Rs 2000 banknotes?

    <p>Rs 20,000 at a time</p> Signup and view all the answers

    What is the impact of the withdrawal of 2000 rupee notes on the economy, according to the RBI governor?

    <p>Very very marginal</p> Signup and view all the answers

    What was the purpose of the demonetization exercise in November 2016?

    <p>To curb black money and corruption</p> Signup and view all the answers

    What is the current percentage of Rs 2000 banknotes in circulation compared to the total notes in circulation?

    <p>10.8%</p> Signup and view all the answers

    What is the main objective of RBI's Clean Note Policy?

    <p>To provide the public with high-quality currency notes and coins with improved security features</p> Signup and view all the answers

    More Like This

    Use Quizgecko on...
    Browser
    Open
    Browser
    Browser