Q. Which one of the following effects of creation black money in India has been main cause of worry to the Government of India?

[A] Diversion of resources to the purchase of real estate and investment in luxury housing

[B] Investment in unproductive activities and purchase of precious stones, jewellery, gold, etc.

[C] Large donations to political parties and growth of regionalism

[D] Loss of revenue to the State Exchequer due to tax evasion

Answer: D

Why this question) Government has taken a number of measures to bring back the black money stashed abroad The Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015 

Ans) d 

Exp) Option d is correct. 

Black money includes all funds earned through illegal activity and otherwise legal income that is not recorded for tax purposes. Black money causesfinancial leakage, as unreported income that is not taxed causes the government to lose revenue. In addition, these funds rarely enter the banking system. As a result, it can be more difficult for legitimate small businesses and entrepreneurs to obtain loans. 

Source)  Black Money Definition (investopedia.com) 

Subject) Economics