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Question:

State the impact of demonetization on interest rates, private wealth and real estate.

Answer:

The impact of demonetization on interest rates, private wealth and real estate are as follow:

Interest rates:

i. There was a decline in cash transactions.
ii. The cash deposit in the bank increased.
iii. There was also an increase in the financial savings.

Private wealth: Public wealth declined because some high demonetized notes were not returned and real estate prices fell.

Real estate: The price of the real estate declined.


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