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Direction: Mark the option which is most suitable:
Assertion : The Reserve Bank of India supervises the functioning of formal sources of loans.
Reason : The RBI sees that the banks give loans not just to profit-making businesses and traders but also to small cultivators, small scale industries, to small borrowers etc.
  • a)
    If Both assertion and reason are true, and reason is the correct explanation of assertion.
  • b)
    If Both assertion and reason are true, but reason is not the correct explanation of assertion.
  • c)
    If Assertion is true, but reason is false.
  • d)
    If Both assertion and reason are false.
Correct answer is option 'B'. Can you explain this answer?
Verified Answer
Direction: Mark the option which is most suitable:Assertion : The Res...
The RBI oversees the functioning of commercial banks. The reason statement substantiates the assertion but it is not the explanation for the assertion.
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Direction: Mark the option which is most suitable:Assertion : The Res...
Assertion: The Reserve Bank of India supervises the functioning of formal sources of loans.

Reason: The RBI sees that the banks give loans not just to profit-making businesses and traders but also to small cultivators, small-scale industries, to small borrowers etc.

Explanation:

The Reserve Bank of India (RBI) is the central bank of India, responsible for regulating and supervising the country's banking system. It plays a crucial role in ensuring the smooth functioning of formal sources of loans, such as banks.

Reason for the Assertion:
The reason given in the statement is that the RBI ensures that banks provide loans not only to profit-making businesses and traders but also to small cultivators, small-scale industries, and small borrowers. This reason supports the assertion that the RBI supervises the functioning of formal sources of loans.

Explanation of the Reason:
The RBI's supervision and regulations are aimed at promoting financial inclusion and ensuring that credit is accessible to various sectors of the economy. The RBI sets guidelines and regulations for banks regarding their lending practices. It ensures that banks provide loans to priority sectors, including agriculture, small-scale industries, micro, small and medium enterprises (MSMEs), and other sectors that require financial support.

The RBI's role is to monitor and supervise the functioning of banks to ensure they comply with these guidelines and meet the credit needs of different sectors. It conducts regular inspections, audits, and reviews of banks' loan portfolios to assess their compliance and risk management practices.

Conclusion:
Both the assertion and reason are true. The RBI supervises the functioning of formal sources of loans, and the reason provided explains why it does so. The RBI's role in overseeing banks' lending practices ensures that loans are not restricted only to profit-making businesses and traders but also reach small cultivators, small-scale industries, and small borrowers. Therefore, option B is the correct answer.
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Direction: Mark the option which is most suitable:Assertion : The Reserve Bank of India supervises the functioning of formal sources of loans.Reason : The RBI sees that the banks give loans not just to profit-making businesses and traders but also to small cultivators, small scale industries, to small borrowers etc.a)If Both assertion and reason are true, and reason is the correct explanation of assertion.b)If Both assertion and reason are true, but reason is not the correct explanation of assertion.c)If Assertion is true, but reason is false.d)If Both assertion and reason are false.Correct answer is option 'B'. Can you explain this answer?
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Direction: Mark the option which is most suitable:Assertion : The Reserve Bank of India supervises the functioning of formal sources of loans.Reason : The RBI sees that the banks give loans not just to profit-making businesses and traders but also to small cultivators, small scale industries, to small borrowers etc.a)If Both assertion and reason are true, and reason is the correct explanation of assertion.b)If Both assertion and reason are true, but reason is not the correct explanation of assertion.c)If Assertion is true, but reason is false.d)If Both assertion and reason are false.Correct answer is option 'B'. Can you explain this answer? for Class 10 2024 is part of Class 10 preparation. The Question and answers have been prepared according to the Class 10 exam syllabus. Information about Direction: Mark the option which is most suitable:Assertion : The Reserve Bank of India supervises the functioning of formal sources of loans.Reason : The RBI sees that the banks give loans not just to profit-making businesses and traders but also to small cultivators, small scale industries, to small borrowers etc.a)If Both assertion and reason are true, and reason is the correct explanation of assertion.b)If Both assertion and reason are true, but reason is not the correct explanation of assertion.c)If Assertion is true, but reason is false.d)If Both assertion and reason are false.Correct answer is option 'B'. Can you explain this answer? covers all topics & solutions for Class 10 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Direction: Mark the option which is most suitable:Assertion : The Reserve Bank of India supervises the functioning of formal sources of loans.Reason : The RBI sees that the banks give loans not just to profit-making businesses and traders but also to small cultivators, small scale industries, to small borrowers etc.a)If Both assertion and reason are true, and reason is the correct explanation of assertion.b)If Both assertion and reason are true, but reason is not the correct explanation of assertion.c)If Assertion is true, but reason is false.d)If Both assertion and reason are false.Correct answer is option 'B'. Can you explain this answer?.
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