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Single Answer MCQ
Q-00045426

What was the main reason for the demonetization in India in 2016?

1

To encourage digital transactions

2

To introduce new currency notes

3

To reduce taxes

4

To increase cash availability

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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

A. To encourage digital transactions

Solution:

The main reason for the demonetization in India in 2016 was to encourage digital transactions and reduce the dependence on cash, addressing issues like corruption and black money.

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