12th Class Economics Money And Banking Question Bank

done Assertion and Reason - Money and Banking Total Questions - 5

• question_answer1)

  Assertion [A] Currency held by public is a monetary liability of central bank.

  Reason [R] Central bank controls credit, whereas commercial banks create credit with the currency held by public.

  A)
  Both Assertion [A] and Reason [R] are true and Reason [R] is the correct explanation of Assertion [A] done clear
  B)
  Both Assertion [A] and Reason [R] are true, but Reason [R] is not the correct explanation of Assertion [A] done clear
  C)
  Assertion [A] is true, but Reason [R] is false done clear
  D)
  Assertion [A] is false, but Reason [R] is true done clear
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• question_answer2)

  Assertion [A] The currency notes do not carry as much value in it as is denominated, still has general acceptance.

  Reason [R] Currency notes are backed by a legal promise from the central bank and central, government of the country.

  A)
  Both Assertion [A] and Reason [R] are true and Reason [R] is the correct explanation of Assertion [A] done clear
  B)
  Both Assertion [A] and Reason [R] are true, but Reason [R] is not the correct explanation of Assertion [A] done clear
  C)
  Assertion [A] is true, but Reason [R] is false done clear
  D)
  Assertion [A] is false, but Reason [R] is true done clear
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• question_answer3)

  Assertion [A] Central bank as a banker to the government, works as a financial adviser.

  Reason [R] Government borrows internally from banks and general public.

  A)
  Both Assertion [A] and Reason [R] are true and Reason [R] is the correct explanation of Assertion [A] done clear
  B)
  Both Assertion [A] and Reason [R] are true, but Reason [R] is not the correct explanation of Assertion [A] done clear
  C)
  Assertion [A] is true, but Reason [R] is false done clear
  D)
  Assertion [A] is false, but Reason [R] is true done clear
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• question_answer4)

  Assertion [A] Paper money is becoming more popular these days.

  Reason [R] It is generally acceptable and convenient to carry.

  A)
  Both Assertion [A] and Reason [R] are true and Reason [R] is the correct explanation of Assertion [A] done clear
  B)
  Both Assertion [A] and Reason [R] are true, but Reason [R] is not the correct explanation of Assertion [A] done clear
  C)
  Assertion [A] is true, but Reason [R] is false done clear
  D)
  Assertion [A] is false, but Reason [R] is true done clear
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• question_answer5)

  Assertion [A] We can still encounter barter system in modern economic system.

  Reason [R] People exchange old clothes for utensils.

  A)
  Both Assertion [A] and Reason [R] are true and Reason [R] is the correct explanation of Assertion [A] done clear
  B)
  Both Assertion [A] and Reason [R] are true, but Reason [R] is not the correct explanation of Assertion [A] done clear
  C)
  Assertion [A] is true, but Reason [R] is false done clear
  D)
  Assertion [A] is false, but Reason [R] is true done clear
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