Assertion (A): Notes and Coins are the only source of money supply in the economy
Assertion (A): Notes and Coins are the only source of money supply in the economy.
Reason (R): Demand deposits with commercial bank is also a component of money supply.
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:-
Assertion (A) is false
Notes and Coins are not the only sources of money supply in the economy. Demand deposits of the public with the commercial bank is also part of the money supply.
Money Supply = Currency with Public + Demand Deposits with Banks
Reason (R) is true
Anurag Pathak Changed status to publish December 15, 2023
