Question

58. Which among the following is correct?

i) India’s demonetization was a first of its kind in its post-independent history

ii) Unlike in other countries demonetization was done in the context of rising inflation and poor growth

• A. a) Only i
• B. b) Only ii
• C. c) Both i and ii
• D. d) Neither i nor ii

Answer 1

The correct option is D d) Neither i nor ii

58 Ans D

Explanation: This was not the first time the Government of India has gone for the demonetisation of high-value currency. It was first implemented in 1946 when the Reserve Bank of India demonetised the then circulated Rs 1,000 and Rs 10,000 notes. The government then introduced higher denomination banknotes in Rs 1000, Rs 5000 and Rs 10000 in a fresh avatar eight years later in 1954 before the Morarji Desai government demonetised these notes in 1978.