All of you must have heard enough noise about demonetization and many of you must have spent a considerable amount of time standing in some of the other queues. This issue, being a radical step, is of obvious importance in Civil Services Mains and it will be no surprise if you find questions from demonetisation in UPSC.
Here we are presenting the top 10 probable questions on demonetisation that you might find in the UPSC mains question paper. These might be asked on demonetization in the mains IAS examination. Instead of wasting your time in admiring or cursing politicians, try these questions out!
10 Probable Questions on Demonetisation for UPSC Mains Question Paper
- Black money is not just an economic, but a social menace as well. Critically examine.
- Liquidity is the lifeblood of the economy, real and parallels both. Elucidate.
- Examine the effects of demonetization on the farm sector in India.
- Demonetization is a powerful but temporary drug to tackle black money. Comment.
- Currency is the economic bond between the state and the citizen. Its crisis may endanger the legitimacy of the state itself. Do you agree? Elaborate in the light of the recent demonetization event.
Other 5 Question on Demonetisation for UPSC
- What are the historical precedents for demonetization in India? How was the 2016 demonetization different from the previous ones?
- Demonetization reflected the lack of teeth of the constitutional provision of parliamentary control over the purse of India. Critically examine.
- Black money has its advantages in a country like India. Elucidate with examples.
- What steps might be required as follow up to demonetization, to check the re-emergence of black money in India?
- The media coverage of demonetization reflects the lack of maturity of Indian media space. Examine.
Things to Know Before Solving These Probable IAS Question
Before you start solving these questions in favour of demonetisation or against it, you must understand the topic well. There can even be MCQ questions related to demonetisation in the UPSC question paper thus the importance of understanding the topic can not be neglected.
To understand demonetisation, it is important to understand everything about the cashless economy. To portray it in simple words it can be said that the economic system which is based on a credit card, debit card, digital wallets transactions are called or known as the cashless economy. Limited amounts of cash transactions take place in cashless economies. In this type of economy, the electronic representation of money is encouraged over transactions by coins or physical notes.
Understand the Merits and Limitations of Demonetisation
There are many merits as well as demerits of demonetisation and it will be no surprise if you find questions in favour of demonetisation in the exam. The advantages of a cashless economy are that there will be no counterfeit currency, the chance of cash theft is very less, payments can be done easily be it within the nation or internationally.
Just like the advantages, there are many disadvantages as well. Especially in a country like India, there are many limitations, some of those are less literacy rate, less availability of devices through which cashless transactions can be made, corruption is a major limitation too. Other than these there are economic inequality, cyber threat or less cybersecurity.
To conclude, there are certain things about demonetisation that one has to understand completely in order to prepare for these above mentioned probable questions on demonetisation. After you understand the topic well, then you can start working on these questions.
Please try answering these questions. Keep an eye on this page to find out the answers to these questions and check if you could write these properly. If you want to be notified about that post, register on UPSC Pathshala.