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Reason(R): Demand Deposits are non-withdrawable in nature and cannot be withdrawn against the issue of cheques and other similar instruments of payment.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Assertion is true because demand deposits are a type of bank deposit that can be withdrawn at any time.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Reason is false because demand deposits can be withdrawn against the issue of cheques and other similar instruments of payment. In fact, this is the main way that demand deposits are withdrawn.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.
Question : Assertion (A): Net Demand deposits of Commercial Banks are included in the money supply.
Reason(R): Interbank deposits are deposits held by banks on behalf of other banks and do not belong to the public.
Question : Assertion (A): Demand deposits is a Non-Legal Tender Money or Optional Money.
Reason(R): Depositors are given a cheque facility to withdraw money from their account or to make payments in case of demand deposits.
Question : Assertion (A): Demand elasticity is higher for durable commodities. Reason (R): Once durable items are in high demand now, their demand can be delayed.
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 and 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
Question : Assertion (A): The demand curve for the market is flatter than the demand curve for an individual.
Reason (R): By horizontally summing individual demand, the market demand curve is created.
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 and Reason (R) is not the correct explanation of Assertion (A)
Question : Assertion (A): Demand elasticity is higher for durable commodities. Reason (R): Demand for durable goods can be postponed once they are demanded at present.
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