Assertion (A): Central bank provides loans to the commercial banks in the situation of financial distress.

Question

0

Anurag Pathak24.20K January 5, 2024 0 Comments

Reason (R): Central bank can order the government to help the bank facing the financial crisis.

Alternatives:

(a) Both Assertion (A) and Reason (R) are True and Reason (R) is the correct explanation of Assertion (A).

(b) Both Assertion (A) and Reason (R) are True and Reason (R) is not the correct explanation of Assertion (A).

(c) Assertion (A) is True but Reason (R) is False

(d) Assertion (A) is False but Reason (R) is True

score 0 · Answer 1 · 2024-01-05T16:07:23+00:00

Ans – (c)

Explanation:-

Assertion (A) is correct as the central bank provides loans to commercial banks in situations of financial crisis.

Reason (R) is false as the central bank can not order the government to help the bank facing the financial crisis.

It is the central bank itself that helps the commercial bank and gives suggestions to the government in this regard.