Question : Assertion (A): Demand Deposits are considered a convenient mode of payment for the execution of even high-value transactions.
Reason(R): Demand Deposits are non-withdrawable in nature and cannot be withdrawn against the issue of cheques and other similar instruments of payment.
Option 1: Both Assertion (A) and Reason(R) are true and Reason (R) is the correct explanation of Assertion (A)
Option 2: Both Assertion (A) and Reason(R) are true, but Reason (R) is not the correct explanation of Assertion (A)
Option 3: Assertion (A) is true, but Reason (R) is false.
Option 4: Assertion (A) Is false, but Reason (R) is true.
Correct Answer: Assertion (A) is true, but Reason (R) is false.
Solution : The correct answer is (c). Assertion (A) is true, but Reason (R) is false.
Assertion is true because demand deposits are a type of bank deposit that can be withdrawn at any time. This makes them a convenient mode of payment for even high-value transactions.
Reason is false because demand deposits can be withdrawn against the issue of cheques and other similar instruments of payment. In fact, this is the main way that demand deposits are withdrawn.
Therefore, the answer is (c). Assertion (A) is true, but Reason (R) is false.
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