Assertion (A): Demand Deposits with Commercial Banks are not a part of Money Supply.
Assertion (A): Demand Deposits with Commercial Banks are not a part of Money Supply.
Reason (R): Demand Deposits are treated as equal to currency held as they are readily accepted as means of payment.
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.
Anurag Pathak Changed status to publish December 15, 2023
Ans – (d)
Explanation:-
Demand deposits are the part of the money supply as these are treated as equal to currency held as they are readily accepted as means of payment.
Thus Assertion (A) is false and Reason (R) is true.
Anurag Pathak Changed status to publish December 15, 2023
