Directions: ​Read the following passage and answer the questions given below. Some words may be highlighted read carefully. 

The Reserve Bank of India’s report shows that 99% of the currency notes that were demonetized have returned to the banking system. This is just a little higher than its provisional estimate last year that over 98.5% of the old Rs.500 and Rs.1,000 notes that were in circulation had been deposited by mid of the following year. Notwithstanding, the RBI report, which points to a sudden surge in counterfeiting of the new Rs.500 and Rs.2,000 notes, raises the same question all over again. Was it worth the slowdown in growth, the damage to informal sector supply chains, and job losses in sectors such as construction that were the bulwark of employment creation for the unskilled? It is true that there were many advantages of demonetization. For instance, the number of income tax returns filed went up drastically as compared to the past. However, many are of the opinion that this could have been achieved by other policy measures as well. People now prefer cashless modes of payment. However, there also has been an increase in financial savings in the form of currency. This suggests that a significant portion of the population still relies on cash. All policies need not be perfectly working. We should accept mistakes and work on planning flaws. This will improve the governance process further. The government must not disown its biggest reform attempt or try to sidestep parliamentary scrutiny of the outcomes of demonetization. Instead, it could focus on fixing the problems that people still face — transactions with Rs.2,000 notes in the absence of Rs.1,000 notes are difficult as it is a departure from the currency denomination principle.  Even as these issues are sorted out, the larger lesson must be heeded: sudden shocks to the economy don’t always yield intended policy objectives.