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Direction: Mark the option which is most suitable:
Assertion : Banks charge a higher interest rate on loans than what they offer on deposits.
Reason : The difference between what is charged from borrowers and what is paid to depositors is their main source of income.
  • 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 'A'. Can you explain this answer?
Most Upvoted Answer
Direction: Mark the option which is most suitable:Assertion : Banks c...
Banks in India hold about 15 percent of their deposits as cash as the remaining deposits are used to provide loans. The interest charged on Loans is higher than the interest paid on deposits and the difference between the two interest rates is the major source of income for banks.
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Direction: Mark the option which is most suitable:Assertion : Banks c...
Explanation:

Assertion: Banks charge a higher interest rate on loans than what they offer on deposits.

Reason: The difference between what is charged from borrowers and what is paid to depositors is their main source of income.

Option A: If Both assertion and reason are true, and reason is the correct explanation of assertion.

This option is correct. Banks charge a higher interest rate on loans to earn a profit. The difference between the interest rate charged from borrowers and the interest rate paid to depositors is called the "spread." This spread is the primary source of income for banks. Therefore, the reason correctly explains why banks charge a higher interest rate on loans.

Option B: If Both assertion and reason are true, but reason is not the correct explanation of assertion.

This option is incorrect because the reason correctly explains why banks charge a higher interest rate on loans.

Option C: If Assertion is true, but reason is false.

This option is incorrect because the reason is true and correctly explains why banks charge a higher interest rate on loans.

Option D: If Both assertion and reason are false.

This option is incorrect because both the assertion and reason are true.

Therefore, the correct answer is option A.
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Direction: Mark the option which is most suitable:Assertion : Banks charge a higher interest rate on loans than what they offer on deposits.Reason : The difference between what is charged from borrowers and what is paid to depositors is their main source of income.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 'A'. 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 Direction: Mark the option which is most suitable:Assertion : Banks charge a higher interest rate on loans than what they offer on deposits.Reason : The difference between what is charged from borrowers and what is paid to depositors is their main source of income.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 'A'. 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 Direction: Mark the option which is most suitable:Assertion : Banks charge a higher interest rate on loans than what they offer on deposits.Reason : The difference between what is charged from borrowers and what is paid to depositors is their main source of income.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 'A'. Can you explain this answer?.
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