Cornell's Basu Says Demonetization Behind India Slowdown

The video discusses India's economic slowdown, linking it to demonetization. It highlights the unexpected return of invalidated currency, suggesting limited illicit cash. The policy's failure to address fake currency and its economic impact are examined. The need for export promotion and interest rate adjustments are proposed as solutions.

What was the average GDP growth rate of India from 2003 to 2008?

• 9.2%

• 6.8%

• 8.59%

• 7.5%

What was one of the main reasons for the demonetization in India?

• To increase foreign investments

• To catch fake currency notes

• To boost the stock market

• To reduce inflation

How did people manage to return invalidated currency to the banks?

• By exchanging it abroad

• By investing in real estate

• Through money mules

• By using online banking

What was one of the unintended consequences of demonetization?

• New forms of money laundering

• Rise in stock market prices

• Decrease in oil prices

• Increase in foreign direct investment

Which sector was most affected by the economic slowdown due to demonetization?

• Technology sector

• Informal sector

• Agricultural sector

• Manufacturing sector

What is one policy suggestion to boost India's economy post-demonetization?

• Increase in import tariffs

• Reducing government spending

• Promotion of exports

• Raising interest rates

What is the government's stance on the demonetization move?

• They blamed external factors

• They defended it as a successful move

• They ignored the issue

• They admitted it was a mistake