Correct Answer: Both Assertion (A) and Reason(R) are true and Reason (R) is the correct explanation of Assertion (A)

Solution : The correct answer is (a) Both Assertion (A) and Reason (R) are true and Reason (R) is the correct explanation of Assertion (A).

Assertion is termed as Fiat money, which is true. Fiat money refers to money that has value because the government declares it to be legal tender, not because it is backed by a physical commodity like gold or silver.

Reason is also true, as legal tender laws require creditors to accept currency as a form of payment.

Therefore, both Assertion (A) and Reason (R) are true, and Reason (R) correctly explains Assertion (A).

Correct Answer: INR 200 bank cheque

Solution : The correct answer is an INR 200 bank cheque.

The government's money, known as fiat money, is not supported by tangible goods like gold or silver. Examples of fiat money are paper currency, coins, and demand drafts, but the INR 200 bank cheque doesn't fall under the category of fiat money.