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Direction: In the question given below are two statements labelled at Assertion (A) and Reason (R). In the context of the two statements, which one of the following is correct?
Assertion (A): Demat account refers to an account which an Indian citizen must open with the DPs to trade in listed securities in electronic form.
Reason (R): Depository is like a bank in which an investor can deposit and withdraw his shares.
  • a)
    Both A and R are true and R is the correct explanation of A
  • b)
    Both A and R are true, but R is not the correct explanation of A
  • c)
    A is true, but R is false
  • d)
    A is false, but R is true
Correct answer is option 'B'. Can you explain this answer?
Most Upvoted Answer
Direction: In the question given below are two statements labelled at...


Explanation:

Assertion (A) and Reason (R) Analysis:

- Assertion (A): Demat account refers to an account which an Indian citizen must open with the DPs to trade in listed securities in electronic form.
- Reason (R): Depository is like a bank in which an investor can deposit and withdraw his shares.

Evaluation:

- Assertion (A) is true because a Demat account is indeed necessary for an Indian citizen to trade in listed securities in electronic form. This account holds shares and securities in electronic form.
- Reason (R) is also true as it correctly explains the role of a depository. A depository functions similar to a bank where an investor can deposit and withdraw shares instead of cash.

Conclusion:

- Both Assertion (A) and Reason (R) are true, and Reason (R) is a correct explanation of Assertion (A).
- Therefore, option 'B' is the correct choice for this question, as both statements are true and Reason (R) justifies Assertion (A) in the context of Demat accounts and depositories.
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Community Answer
Direction: In the question given below are two statements labelled at...
Investors who want to get securities in electronic form opens a Demat Account. From this account one can hold shares of various companies in the dematerialised/ electronic form.
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Direction: In the question given below are two statements labelled at Assertion (A) and Reason (R). In the context of the two statements, which one of the following is correct?Assertion (A): Demat account refers to an account which an Indian citizen must open with the DPs to trade in listed securities in electronic form.Reason (R): Depository is like a bank in which an investor can deposit and withdraw his shares.a)Both A and R are true and R is the correct explanation of Ab)Both A and R are true, but R is not the correct explanation of Ac)A is true, but R is falsed)A is false, but R is trueCorrect answer is option 'B'. Can you explain this answer?
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Direction: In the question given below are two statements labelled at Assertion (A) and Reason (R). In the context of the two statements, which one of the following is correct?Assertion (A): Demat account refers to an account which an Indian citizen must open with the DPs to trade in listed securities in electronic form.Reason (R): Depository is like a bank in which an investor can deposit and withdraw his shares.a)Both A and R are true and R is the correct explanation of Ab)Both A and R are true, but R is not the correct explanation of Ac)A is true, but R is falsed)A is false, but R is trueCorrect answer is option 'B'. Can you explain this answer? for Commerce 2024 is part of Commerce preparation. The Question and answers have been prepared according to the Commerce exam syllabus. Information about Direction: In the question given below are two statements labelled at Assertion (A) and Reason (R). In the context of the two statements, which one of the following is correct?Assertion (A): Demat account refers to an account which an Indian citizen must open with the DPs to trade in listed securities in electronic form.Reason (R): Depository is like a bank in which an investor can deposit and withdraw his shares.a)Both A and R are true and R is the correct explanation of Ab)Both A and R are true, but R is not the correct explanation of Ac)A is true, but R is falsed)A is false, but R is trueCorrect answer is option 'B'. Can you explain this answer? covers all topics & solutions for Commerce 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Direction: In the question given below are two statements labelled at Assertion (A) and Reason (R). In the context of the two statements, which one of the following is correct?Assertion (A): Demat account refers to an account which an Indian citizen must open with the DPs to trade in listed securities in electronic form.Reason (R): Depository is like a bank in which an investor can deposit and withdraw his shares.a)Both A and R are true and R is the correct explanation of Ab)Both A and R are true, but R is not the correct explanation of Ac)A is true, but R is falsed)A is false, but R is trueCorrect answer is option 'B'. Can you explain this answer?.
Solutions for Direction: In the question given below are two statements labelled at Assertion (A) and Reason (R). In the context of the two statements, which one of the following is correct?Assertion (A): Demat account refers to an account which an Indian citizen must open with the DPs to trade in listed securities in electronic form.Reason (R): Depository is like a bank in which an investor can deposit and withdraw his shares.a)Both A and R are true and R is the correct explanation of Ab)Both A and R are true, but R is not the correct explanation of Ac)A is true, but R is falsed)A is false, but R is trueCorrect answer is option 'B'. Can you explain this answer? in English & in Hindi are available as part of our courses for Commerce. Download more important topics, notes, lectures and mock test series for Commerce Exam by signing up for free.
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