What lesson did demonetisation give in cash management?
Answer and explanation
Correct answer: Sales should not depend only on cash
During demonetisation, the availability of cash became suddenly limited. Businesses therefore learned that relying only on cash for sales and payments is risky; they should also maintain alternatives such as banking and digital payment modes. Rejecting bank accounts or digital payments would worsen, not solve, the problem. Exam tip: Remember the increased importance of digital transactions and formal banking as an effect of demonetisation.
Frequently asked questions
What is the correct answer to this question?
Sales should not depend only on cash
Why is this the correct answer?
During demonetisation, the availability of cash became suddenly limited. Businesses therefore learned that relying only on cash for sales and payments is risky; they should also maintain alternatives such as banking and digital payment modes. Rejecting bank accounts or digital payments would worsen, not solve, the problem. Exam tip: Remember the increased importance of digital transactions and formal banking as an effect of demonetisation.
Which subject and chapter does this question cover?
This is a Class 12 Business Studies question. Chapter: Business Environment. Topic: Demonetisation.
Student feedback
Was this question useful?
👍 0 Helpful 👎 0 Not helpful
Yes 0% No 0%
0 responsesWrite a review / Rate this question
Student Reviews
No published reviews yet.
