Assertion (A): Demand deposits are a Non-Legal Tender Money or optional Money.
Assertion (A): Demand deposits are a Non-Legal Tender Money or optional Money.
Reason (R): Depositors are given cheque facility to withdraw money from their account or to make payment in case of demand deposits.
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.
Ans – (b)
Explanation:-
Assertion (A) is true
Demand deposits are non-legal tender money or optional money as the acceptor can refuse to accept the payment in the form of cheque and demand draft.
Reason (R) is also true
The depositor is given a cheque facility to withdraw money from their account or to make payment in case of demand deposits.
But Reason (R) is not the correct explanation of Assertion (A) as it does not explain how a demand deposit is a non-legal tender money or options money.
