27 Questions
What is the legal basis for demonetization in India?
Section 26(2) of the Reserve Bank of India Act, 1934
What is the test of proportionality referred to in the text?
Whether the benefits of demonetization outweigh the costs
What is one of the disadvantages mentioned in the text regarding demonetization?
Temporary Slowdown
Why did the RBI withdraw the 2000 rupee notes?
To meet immediate currency requirements after demonetization
What is the exchange limit for Rs 2000 banknotes?
Rs 20,000 at a time
What does the RBI's Clean Note Policy focus on?
Providing high-quality currency notes and coins
What was the impact of the withdrawal of 2000 rupee notes on the economy, according to the RBI governor?
Boost in bank deposits and reduction in interest rates
What is demonetization?
The act of stripping a currency unit of its status as legal tender
What is the legal basis for demonetization in India?
Section 26(2) of the Reserve Bank of India Act, 1934
According to the Supreme Court, what is the test of proportionality in the context of demonetization?
The test of whether the benefits of demonetization are significant enough to justify the costs
What were some advantages of demonetization mentioned in the text?
All of the above
What were some disadvantages of demonetization mentioned in the text?
All of the above
What was the RBI's announcement regarding the Rs 2000 denomination banknotes?
The existing notes will remain legal tender
What is the deadline for individuals to deposit or exchange the Rs 2000 denomination banknotes?
September 30, 2023
What is the potential impact of demonetization on small businesses operating on thin profit margins?
All of the above
What did the Supreme Court state about the demonetization of Rs 500 and Rs 1000 currency notes?
It was valid
What did the Supreme Court say about the benefits of demonetization?
They were significant enough to justify the costs
Why were the Rs 2000 banknotes introduced in 2016?
To meet the immediate currency requirements after the withdrawal of Rs 500 and Rs 1000 notes
What is the current value of Rs 2000 banknotes in circulation as of March 31, 2023?
Rs 3.62 lakh crore
What is the definition of a 'soiled note' according to RBI's Clean Note Policy?
A note which has become dirty due to normal wear and tear
Why did the RBI withdraw all banknotes issued before 2005?
Due to their fewer security features as compared to banknotes printed after 2005
What was the main objective of introducing Rs 2000 banknotes in 2016?
To meet the immediate currency requirements after the withdrawal of Rs 500 and Rs 1000 notes
What is the exchange limit for Rs 2000 banknotes?
Rs 20,000 at a time
What is the impact of the withdrawal of 2000 rupee notes on the economy, according to the RBI governor?
Very very marginal
What was the purpose of the demonetization exercise in November 2016?
To curb black money and corruption
What is the current percentage of Rs 2000 banknotes in circulation compared to the total notes in circulation?
10.8%
What is the main objective of RBI's Clean Note Policy?
To provide the public with high-quality currency notes and coins with improved security features
Test your knowledge on demonetization in India with this quiz! Learn about the legal basis, impact, and historical context of demonetization in India.
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