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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): Capital market is the biggest source for growth of an economy.
Reason (R): Capital market provides long-term funds to organised and unorganised sectors.
- 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...
The capital market effectively transfers monetary purchase power from surplus funds of investors to those with deficits for a fixed period in exchange for greater future purchasing power. They play a major role in recapitalizing and privatization of large infrastructure projects and industries.
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Direction: In the question given below are two statements labelled at...
Understanding the Assertion and Reason
The assertion (A) states that the capital market is the biggest source for the growth of an economy. This is widely recognized as true because capital markets facilitate the mobilization of savings and investments which drive economic growth.
Role of Capital Markets
- **Long-term Financing**: Capital markets provide long-term funds essential for businesses to expand, innovate, and improve efficiency.
- **Investment Opportunities**: They offer a platform for individuals and institutions to invest in a variety of financial instruments, increasing capital inflows into the economy.
Assertion Analysis
- **True Statement**: The assertion accurately reflects the significance of capital markets in the economic framework.
- **Growth Catalyst**: By channeling funds into productive ventures, capital markets substantially contribute to GDP growth and job creation.
Reason Analysis
- **True but Limited**: The reason (R) is also true, as capital markets indeed provide funds to both organized and unorganized sectors.
- **Scope of Impact**: However, the explanation does not fully encapsulate why the assertion is true. While capital markets fund various sectors, the assertion emphasizes their role in overall economic growth, which is broader than simply providing funds.
Conclusion
Given that both statements are true, but the reason does not adequately explain why the assertion holds, the correct choice is:
- **Option b**: Both A and R are true, but R is not the correct explanation of A.
This highlights the importance of understanding the distinct roles of capital markets in economic growth versus the specific functions they serve in funding.
The assertion (A) states that the capital market is the biggest source for the growth of an economy. This is widely recognized as true because capital markets facilitate the mobilization of savings and investments which drive economic growth.
Role of Capital Markets
- **Long-term Financing**: Capital markets provide long-term funds essential for businesses to expand, innovate, and improve efficiency.
- **Investment Opportunities**: They offer a platform for individuals and institutions to invest in a variety of financial instruments, increasing capital inflows into the economy.
Assertion Analysis
- **True Statement**: The assertion accurately reflects the significance of capital markets in the economic framework.
- **Growth Catalyst**: By channeling funds into productive ventures, capital markets substantially contribute to GDP growth and job creation.
Reason Analysis
- **True but Limited**: The reason (R) is also true, as capital markets indeed provide funds to both organized and unorganized sectors.
- **Scope of Impact**: However, the explanation does not fully encapsulate why the assertion is true. While capital markets fund various sectors, the assertion emphasizes their role in overall economic growth, which is broader than simply providing funds.
Conclusion
Given that both statements are true, but the reason does not adequately explain why the assertion holds, the correct choice is:
- **Option b**: Both A and R are true, but R is not the correct explanation of A.
This highlights the importance of understanding the distinct roles of capital markets in economic growth versus the specific functions they serve in funding.
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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): Capital market is the biggest source for growth of an economy.Reason (R): Capital market provides long-term funds to organised and unorganised sectors.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): Capital market is the biggest source for growth of an economy.Reason (R): Capital market provides long-term funds to organised and unorganised sectors.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): Capital market is the biggest source for growth of an economy.Reason (R): Capital market provides long-term funds to organised and unorganised sectors.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): Capital market is the biggest source for growth of an economy.Reason (R): Capital market provides long-term funds to organised and unorganised sectors.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): Capital market is the biggest source for growth of an economy.Reason (R): Capital market provides long-term funds to organised and unorganised sectors.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): Capital market is the biggest source for growth of an economy.Reason (R): Capital market provides long-term funds to organised and unorganised sectors.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): Capital market is the biggest source for growth of an economy.Reason (R): Capital market provides long-term funds to organised and unorganised sectors.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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