Question

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

• A. Excessive government control
• B. Shortage of goods
• C. Low income
• D. Low expenses

Answer 1

Answer: (A), (B)

Shortage of goods

Excessive government control and regulation leads to black money. For example, the licence system restricts the growth of businesses, which is required to meet the needs of the people. This creates a scarcity of goods. And then people sell the goods at higher prices, making black money.