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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): Stock exchange contributes to economic growth.
Reason (R): Through the process of disinvestment and reinvestment savings get channelised into their most productive investment avenues.
- 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 'A'. Can you explain this answer?
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Direction: In the question given below are two statements labelled at...
Stock exchange offers a platform for trading of securities of the various companies. This process of trading involves continuous disinvestment and reinvestment, which offers opportunities for capital formation and subsequently, growth of the economy.
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Direction: In the question given below are two statements labelled at...
Explanation:
Assertion (A): Stock exchange contributes to economic growth.
- The stock exchange plays a crucial role in the economy by providing a platform for companies to raise capital through the issuance of stocks and bonds.
- This capital allows companies to invest in new projects, expand their operations, and create job opportunities, contributing to overall economic growth.
- Additionally, the stock market provides liquidity to investors, allowing them to buy and sell securities easily, which further stimulates economic activity.
Reason (R): Through the process of disinvestment and reinvestment savings get channelised into their most productive investment avenues.
- Disinvestment refers to the selling of assets, such as stocks or bonds, which can then be reinvested into more productive investment avenues.
- By reallocating savings into more profitable ventures, disinvestment and reinvestment help channelize funds towards projects that have the potential to generate higher returns.
- This process of capital reallocation leads to increased efficiency in the allocation of resources, ultimately contributing to economic growth.
Conclusion:
Both Assertion (A) and Reason (R) are true, and Reason (R) correctly explains why stock exchange contributes to economic growth.
Assertion (A): Stock exchange contributes to economic growth.
- The stock exchange plays a crucial role in the economy by providing a platform for companies to raise capital through the issuance of stocks and bonds.
- This capital allows companies to invest in new projects, expand their operations, and create job opportunities, contributing to overall economic growth.
- Additionally, the stock market provides liquidity to investors, allowing them to buy and sell securities easily, which further stimulates economic activity.
Reason (R): Through the process of disinvestment and reinvestment savings get channelised into their most productive investment avenues.
- Disinvestment refers to the selling of assets, such as stocks or bonds, which can then be reinvested into more productive investment avenues.
- By reallocating savings into more profitable ventures, disinvestment and reinvestment help channelize funds towards projects that have the potential to generate higher returns.
- This process of capital reallocation leads to increased efficiency in the allocation of resources, ultimately contributing to economic growth.
Conclusion:
Both Assertion (A) and Reason (R) are true, and Reason (R) correctly explains why stock exchange contributes to economic growth.
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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): Stock exchange contributes to economic growth.Reason (R): Through the process of disinvestment and reinvestment savings get channelised into their most productive investment avenues.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 'A'. 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): Stock exchange contributes to economic growth.Reason (R): Through the process of disinvestment and reinvestment savings get channelised into their most productive investment avenues.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 'A'. 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): Stock exchange contributes to economic growth.Reason (R): Through the process of disinvestment and reinvestment savings get channelised into their most productive investment avenues.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 'A'. 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): Stock exchange contributes to economic growth.Reason (R): Through the process of disinvestment and reinvestment savings get channelised into their most productive investment avenues.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 'A'. Can you explain this answer?.
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): Stock exchange contributes to economic growth.Reason (R): Through the process of disinvestment and reinvestment savings get channelised into their most productive investment avenues.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 'A'. 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): Stock exchange contributes to economic growth.Reason (R): Through the process of disinvestment and reinvestment savings get channelised into their most productive investment avenues.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 'A'. 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): Stock exchange contributes to economic growth.Reason (R): Through the process of disinvestment and reinvestment savings get channelised into their most productive investment avenues.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 'A'. 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): Stock exchange contributes to economic growth.Reason (R): Through the process of disinvestment and reinvestment savings get channelised into their most productive investment avenues.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 'A'. Can you explain this answer? in English & in Hindi are available as part of our courses for Commerce.
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ample number of questions to practice 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): Stock exchange contributes to economic growth.Reason (R): Through the process of disinvestment and reinvestment savings get channelised into their most productive investment avenues.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 'A'. Can you explain this answer? tests, examples and also practice Commerce tests.
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