Class 10 Exam > Class 10 Questions > In the question given below, there are two s...
Start Learning for Free
In the question given below, there are two statements marked as Assertion (A) and Reason (R). Read the Statements and choose the correct option:
Assertion (A) : Banks keeps a small proportion of their deposits as cash with themselves.
Reason (R) : This is kept to meet the loan requirements of the people.
- 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 correct but (R) is wrong.
- d)(A) is wrong but (R) is correct
Correct answer is option 'C'. Can you explain this answer?
Most Upvoted Answer
In the question given below, there are two statements marked as Asser...
Banks keep only a small proportion of their deposits as cash with themselves. This is kept as a provision to pay the depositors who might come to withdraw money from the bank on any given day.
Free Test
FREE
| Start Free Test |
Community Answer
In the question given below, there are two statements marked as Asser...
Assertion (A): Banks keep a small proportion of their deposits as cash with themselves.
Reason (R): This is kept to meet the loan requirements of the people.
Explanation:
In order to understand the correctness of the given assertion and reason, let's analyze each statement individually.
Assertion (A): Banks keep a small proportion of their deposits as cash with themselves.
- This statement is true. Banks do keep a certain amount of cash with themselves. This cash reserve is known as the Cash Reserve Ratio (CRR). CRR is a certain percentage of the total deposits that banks are required to keep with the central bank. This helps the central bank control the liquidity in the economy and ensures that banks have enough cash to meet the withdrawal demands of their customers.
Reason (R): This is kept to meet the loan requirements of the people.
- This statement is incorrect. The cash reserve kept by banks is not primarily for meeting loan requirements. The main purpose of maintaining a cash reserve is to ensure the stability of the banking system and to meet the withdrawal demands of depositors. Banks provide loans using the deposits they receive, but they are not directly dependent on the cash reserve for lending purposes. The lending capacity of banks is determined by factors such as capital adequacy, liquidity position, and creditworthiness of borrowers.
Conclusion:
Both the assertion and reason are true, but the reason is not the correct explanation of the assertion. The cash reserve held by banks is primarily for maintaining stability and meeting the withdrawal demands of depositors, rather than directly meeting loan requirements. Therefore, option (b) is the correct answer.
Reason (R): This is kept to meet the loan requirements of the people.
Explanation:
In order to understand the correctness of the given assertion and reason, let's analyze each statement individually.
Assertion (A): Banks keep a small proportion of their deposits as cash with themselves.
- This statement is true. Banks do keep a certain amount of cash with themselves. This cash reserve is known as the Cash Reserve Ratio (CRR). CRR is a certain percentage of the total deposits that banks are required to keep with the central bank. This helps the central bank control the liquidity in the economy and ensures that banks have enough cash to meet the withdrawal demands of their customers.
Reason (R): This is kept to meet the loan requirements of the people.
- This statement is incorrect. The cash reserve kept by banks is not primarily for meeting loan requirements. The main purpose of maintaining a cash reserve is to ensure the stability of the banking system and to meet the withdrawal demands of depositors. Banks provide loans using the deposits they receive, but they are not directly dependent on the cash reserve for lending purposes. The lending capacity of banks is determined by factors such as capital adequacy, liquidity position, and creditworthiness of borrowers.
Conclusion:
Both the assertion and reason are true, but the reason is not the correct explanation of the assertion. The cash reserve held by banks is primarily for maintaining stability and meeting the withdrawal demands of depositors, rather than directly meeting loan requirements. Therefore, option (b) is the correct answer.
|
Explore Courses for Class 10 exam
|
|
Top Courses for Class 10View all
Question Description
In the question given below, there are two statements marked as Assertion (A) and Reason (R). Read the Statements and choose the correct option:Assertion (A) : Banks keeps a small proportion of their deposits as cash with themselves.Reason (R) : This is kept to meet the loan requirements of the people.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 correct but (R) is wrong.d)(A) is wrong but (R) is correctCorrect answer is option 'C'. Can you explain this answer? for Class 10 2025 is part of Class 10 preparation. The Question and answers have been prepared according to the Class 10 exam syllabus. Information about In the question given below, there are two statements marked as Assertion (A) and Reason (R). Read the Statements and choose the correct option:Assertion (A) : Banks keeps a small proportion of their deposits as cash with themselves.Reason (R) : This is kept to meet the loan requirements of the people.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 correct but (R) is wrong.d)(A) is wrong but (R) is correctCorrect answer is option 'C'. Can you explain this answer? covers all topics & solutions for Class 10 2025 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for In the question given below, there are two statements marked as Assertion (A) and Reason (R). Read the Statements and choose the correct option:Assertion (A) : Banks keeps a small proportion of their deposits as cash with themselves.Reason (R) : This is kept to meet the loan requirements of the people.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 correct but (R) is wrong.d)(A) is wrong but (R) is correctCorrect answer is option 'C'. Can you explain this answer?.
In the question given below, there are two statements marked as Assertion (A) and Reason (R). Read the Statements and choose the correct option:Assertion (A) : Banks keeps a small proportion of their deposits as cash with themselves.Reason (R) : This is kept to meet the loan requirements of the people.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 correct but (R) is wrong.d)(A) is wrong but (R) is correctCorrect answer is option 'C'. Can you explain this answer? for Class 10 2025 is part of Class 10 preparation. The Question and answers have been prepared according to the Class 10 exam syllabus. Information about In the question given below, there are two statements marked as Assertion (A) and Reason (R). Read the Statements and choose the correct option:Assertion (A) : Banks keeps a small proportion of their deposits as cash with themselves.Reason (R) : This is kept to meet the loan requirements of the people.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 correct but (R) is wrong.d)(A) is wrong but (R) is correctCorrect answer is option 'C'. Can you explain this answer? covers all topics & solutions for Class 10 2025 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for In the question given below, there are two statements marked as Assertion (A) and Reason (R). Read the Statements and choose the correct option:Assertion (A) : Banks keeps a small proportion of their deposits as cash with themselves.Reason (R) : This is kept to meet the loan requirements of the people.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 correct but (R) is wrong.d)(A) is wrong but (R) is correctCorrect answer is option 'C'. Can you explain this answer?.
Solutions for In the question given below, there are two statements marked as Assertion (A) and Reason (R). Read the Statements and choose the correct option:Assertion (A) : Banks keeps a small proportion of their deposits as cash with themselves.Reason (R) : This is kept to meet the loan requirements of the people.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 correct but (R) is wrong.d)(A) is wrong but (R) is correctCorrect answer is option 'C'. Can you explain this answer? in English & in Hindi are available as part of our courses for Class 10.
Download more important topics, notes, lectures and mock test series for Class 10 Exam by signing up for free.
Here you can find the meaning of In the question given below, there are two statements marked as Assertion (A) and Reason (R). Read the Statements and choose the correct option:Assertion (A) : Banks keeps a small proportion of their deposits as cash with themselves.Reason (R) : This is kept to meet the loan requirements of the people.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 correct but (R) is wrong.d)(A) is wrong but (R) is correctCorrect answer is option 'C'. Can you explain this answer? defined & explained in the simplest way possible. Besides giving the explanation of
In the question given below, there are two statements marked as Assertion (A) and Reason (R). Read the Statements and choose the correct option:Assertion (A) : Banks keeps a small proportion of their deposits as cash with themselves.Reason (R) : This is kept to meet the loan requirements of the people.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 correct but (R) is wrong.d)(A) is wrong but (R) is correctCorrect answer is option 'C'. Can you explain this answer?, a detailed solution for In the question given below, there are two statements marked as Assertion (A) and Reason (R). Read the Statements and choose the correct option:Assertion (A) : Banks keeps a small proportion of their deposits as cash with themselves.Reason (R) : This is kept to meet the loan requirements of the people.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 correct but (R) is wrong.d)(A) is wrong but (R) is correctCorrect answer is option 'C'. Can you explain this answer? has been provided alongside types of In the question given below, there are two statements marked as Assertion (A) and Reason (R). Read the Statements and choose the correct option:Assertion (A) : Banks keeps a small proportion of their deposits as cash with themselves.Reason (R) : This is kept to meet the loan requirements of the people.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 correct but (R) is wrong.d)(A) is wrong but (R) is correctCorrect answer is option 'C'. Can you explain this answer? theory, EduRev gives you an
ample number of questions to practice In the question given below, there are two statements marked as Assertion (A) and Reason (R). Read the Statements and choose the correct option:Assertion (A) : Banks keeps a small proportion of their deposits as cash with themselves.Reason (R) : This is kept to meet the loan requirements of the people.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 correct but (R) is wrong.d)(A) is wrong but (R) is correctCorrect answer is option 'C'. Can you explain this answer? tests, examples and also practice Class 10 tests.
|
|
Explore Courses for Class 10 exam
|
|
Signup for Free!
Signup to see your scores go up within 7 days! Learn & Practice with 1000+ FREE Notes, Videos & Tests.
|
© EduRev
|
Education Revolution
|
|
Signup to see your scores
go up within 7 days!
Access 1000+ FREE Docs, Videos and Tests
Takes less than 10 seconds to signup