How does Dabba Trading contribute to the growth of a parallel economy?
(a) By promoting regulated trading
(b) By ensuring transactions go through the formal banking system.
(c) By allowing trading to take place outside of the formal banking system and promoting cash transactions that avoid taxation.
(d) By protecting investor's rights.
(a) By promoting regulated trading
(b) By ensuring transactions go through the formal banking system.
(c) By allowing trading to take place outside of the formal banking system and promoting cash transactions that avoid taxation.
(d) By protecting investor's rights.
Answers & Comments
Verified answer
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Since all activities are facilitated using cash, and without any auditable records, it could potentially encourage the growth of 'black money' alongside perpetuating a parallel economy. This could potentially translate to risks entailing money laundering and criminal activities.