BUSINESS ADMINISTRATION
BUSINESS ENVIRONMENT
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Depletion of public wealth
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Reduced digitalisation
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Rise in tax evasion
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Decreased real estate prices
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Detailed explanation-1: -The prices of luxurious properties declined by approximately 20%-30%. Yet, the reduction in this segment also opened doors for eager property buyers. The effects of demonetisation had an impact on investors in the real estate sector. Many investors dealt with unaccounted money (black money).
Detailed explanation-2: -Immediately after the announcement, land deals were down and prices in case of such deals dropped by almost 30 percent to 40 percent on account of drop in cash dealings. The affordable housing policy coupled with incentives such as the softening of interest rates helped offset the impact of demonetisation.
Detailed explanation-3: -Interest rates: Cash transactions declined, Bank deposits increased and Increase in financial savings. Private wealth: Declined since some high demonetized notes were not returned. Real estate: Decline in prices of property.
Detailed explanation-4: -Demerits of Demonetisation The sudden announcement of demonetisation in India caused panic and chaos in the country. It affected daily wage workers. Many were out of work as their employers could not pay them in cash due to the cash crunch. The government expense increased on printing new currencies.