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Single Answer MCQ
Q-00045471

What was a major effect of demonetisation in India in 2016?

1

Increased cash circulation

2

Encouraged digital transactions

3

Higher money supply

4

Decreased interest rates on loans

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Sandeep Chaturvedi

Sandeep Chaturvedi

CBSE Social Science & Humanities Reviewer

Social science and humanities educator with 14+ years of experience reviewing CBSE SST, economics, commerce, arts, and vocational content.

M.A. HistoryM.A. Political ScienceB.Ed.

Answer and Solution

Answer

B. Encouraged digital transactions

Solution:

Demonetisation prompted many individuals to transition from cash to digital payment methods, thereby encouraging the use of internet banking and digital transactions to reduce reliance on physical cash.

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