BANKING GENERAL KNOWLEDGE
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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To reduce the number of families which lives below poverty line.
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To reduce the NPA of Banks.
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To reduce the Black Money.
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To reduce the unemployment rate.
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Detailed explanation-1: -Money Laundering refers to converting illegal earned money into legitimate money. The government does not get any tax on the money because there is no accounting of the black money. So Money Laundering is a way to hide the illegally acquired money.
Detailed explanation-2: -The major aim of a large number of criminal activities is to generate huge profits for the individual or group that carries out such activities . Money laundering disguise the criminal proceeds’ illegal origin, thereby enabling the criminals to enjoy these profits without compromising their source.
Detailed explanation-3: -India needs a rationalized tax structure. Prof. Kaldor, Wanchoo Committee and many others including the authors of the NIPFP Report have recommended a reduction in marginal tax rates, simplification of tax structure, taxation laws and improvements in tax administration.
Detailed explanation-4: -Money laundering is the process of hiding the source of money obtained from illegal sources and converting it to a clean source, thereby avoiding prosecution, conviction, and confiscation of the criminal funds. It is an illegal exercise that converts black money into white money.