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.
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: 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)
Both Assertion (A) and Reason(R) are true and Reason (R) is the correct explanation of Assertion (A)
Question : Assertion: Physical capital is tangible in nature Reason: Physical capital can be seen and touchable.
Question : Assertion(A)Central Bank as a banker to the government, works as a custodian of cash reserves.
Reason(R) The Central Bank acts as a clearinghouse for the transfer and settlement of mutual claims of commercial banks.
Question : Assertion (A) Central Bank as a banker to the government, works as a custodian of cash reserves.
Question : Assertion: Commercial banks play a significant role in the money market.
Reason: Commercial banks provide long-term loans to individuals and businesses.
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