Question

Parallel economy refers to ___________________.

• A. traditional economy
• B. black money economy
• C. agricultural-based economy
• D. socialist economy

Answer 1

The correct option is B black money economy

Parallel economy refers to the black or shadow economy where the tax are evated on a large amount and money flows in an unauthorized way which is not reported to the official authority of an economy which creates very huge loss on the tax revenues of the government.