Question

To curb black money and improve resource mobilisation, a government can:

• A. Increase the circulation of physical currency to encourage spending.
• B. Reduce taxes on luxury goods to stimulate investment.
• C. Encourage untraceable cash-based transactions to simplify business dealings.
• D. Promote and mandate the use of digital transactions and enforce strict anti-money laundering laws.

Answer 1

Answer:

D. Promote and mandate the use of digital transactions and enforce strict anti-money laundering laws.

• Digital transactions leave a clear audit trail, making it much harder to evade taxes and hide illicit funds.