Black Money

Q. Excessive government control and regulation like license systems lead to .

1. tax evasion
2. tax benefits
3. black money
4. increase in exports

Q. Tax evasion and black money are grave offences and can be penalised with imprisonment of up to five years and hefty fines.

1. False
2. True

Q. Money that is unaccounted for is called black money. What are certain factors that influence the presence of black money?

1. Excessive government control
2. Shortage of goods
3. Low income
4. Low expenses

Q. Susie is involved in tax evasion and has stored up black money. However, the income tax department suspected misconduct and conducted raids. What are the penalties that Susie might get?

1. Excused with warning
2. Imprisonment up to five years
3. Hefty fines
4. Payment of interest for the amount

Q. If taxes are evaded, it means no tax is paid on that income. What is such an income known as?

1. White money
2. Tax-free money
3. Green money
4. Black money

Q. Suppose there is a scarcity of wheat in your town. What would be the effects of this situation?

1. Increase in the price of wheat
2. Creation of black money
3. Decrease in the price of wheat
4. Smuggling of wheat