You have 100,000 USD available to you for launching an initiative which makes most of the opportunity

that demonetisation has created. You are required to talk about x opportunities and why you decided on
the one that you choose. The business value must be clear from the solution stand point (how will you
make money?)
Solution
One of the sectors which are expected to benefit out of demonetisation is Banking and Financial
Services. One of the premise of some of the following suggestions is that the banks will be flush with
money. Some of the ways in which money can be invested are as follows
1. Invest in Long-term Government bonds: - Because banks will have a lot of money, they will also
put money in Government bonds as they are secure enough
2. Interest-Rate Derivatives: - Specifically, sell the said derivatives. Banks will be under pressure to
lend the extra money and in the process, the interest rates are likely to fall. This is an
opportunity which can be leveraged by going short on interest rate derivatives.
3. Informal Economy to Formal Economy: - Coupled with GST, a lot of informal business will turn
into formal business. Because of this, two sectors will have opportunities which are as follow: a. Aggregated Labour Business
b. Supply Chain Management
4. IT companies: - As the push towards a cashless economy increases, IT sector stands to benefit
by providing solutions in this regard. The money can be either used to fund such a start-up or by
investing in equity market although they do carry some element of risk.
5. Wealth Management Firms: - Some of the money can also be used to setup a wealthmanagement asset as with demonetisation and crack-down on black money, a no of
opportunities of wealth management of High Net-worth Individuals (HNI) are likely to open up.