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

1. A

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

   Luxury housing. A symptom, not the main fiscal worry as keyed.

2. B

   Investment in unproductive activities and purchase of previous stones, jewellery, gold, etc.

   Gold and jewellery. Another sink for black money.

3. C

   Large donations to political parties and growth of regionalism

   Political donations. A governance worry, not the revenue line.

4. D

   Loss of revenue to the State Exchequer due to tax evasion

   Loss of revenue to the exchequer from tax evasion. That is the government’s main fiscal complaint.

Summary. Official key is (d). Black money’s core public-finance harm is tax evasion — revenue lost to the State. Real estate, gold and donations are channels, not the keyed ‘main cause of worry’.