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Directions: In the following questions, a statement of assertion (A) is followed by a statement of reason (R). Mark the correct choice as:
Assertion (A): The monetary policy is a policy formulated by the central bank.
Reason (R): The policy involves measures taken to regulate the supply of money, availability, and cost of credit in the economy.
  • a)
    Both assertion (A) and reason (R) are true and reason (R) is the correct explanation of assertion (A).
  • b)
    Both assertion (A) and reason (R) are true but reason (R) is not the correct explanation of assertion (A).
  • c)
    Assertion (A) is true but reason (R) is false.
  • d)
    Assertion (A) is false but reason (R) is true.
Correct answer is option 'A'. Can you explain this answer?
Verified Answer
Directions: In the following questions, a statement of assertion (A) ...
Monetary policy refers to the policy of the central bank with regard to the use of monetary instruments under its control to achieve the goals specified in the Act. The Reserve Bank of India (RBI) is vested with the responsibility of conducting monetary policy.
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Most Upvoted Answer
Directions: In the following questions, a statement of assertion (A) ...
Explanation:

Central Bank and Monetary Policy:
- The assertion is true as the monetary policy is indeed formulated by the central bank of a country.
- The central bank, such as the Federal Reserve in the United States or the Reserve Bank of India, is responsible for formulating and implementing monetary policy.

Regulation of Money Supply:
- The reason provided is also true as the monetary policy involves measures taken to regulate the supply of money in the economy.
- These measures can include setting interest rates, open market operations, and reserve requirements to control the availability and cost of credit in the economy.

Explanation of Correct Answer:
- Both the assertion and reason are true in this case.
- The reason provided correctly explains why the assertion is true, as the central bank formulates the monetary policy to regulate the supply of money and credit in the economy.
- Therefore, the correct answer is option 'A', where both assertion and reason are true and the reason is the correct explanation of the assertion.
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Directions: In the following questions, a statement of assertion (A) is followed by a statement of reason (R). Mark the correct choice as:Assertion (A): The monetary policy is a policy formulated by the central bank.Reason (R): The policy involves measures taken to regulate the supply of money, availability, and cost of credit in the economy.a)Both assertion (A) and reason (R) are true and reason (R) is the correct explanation of assertion (A).b)Both assertion (A) and reason (R) are true but reason (R) is not the correct explanation of assertion (A).c)Assertion (A) is true but reason (R) is false.d)Assertion (A) is false but reason (R) is true.Correct answer is option 'A'. Can you explain this answer?
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Directions: In the following questions, a statement of assertion (A) is followed by a statement of reason (R). Mark the correct choice as:Assertion (A): The monetary policy is a policy formulated by the central bank.Reason (R): The policy involves measures taken to regulate the supply of money, availability, and cost of credit in the economy.a)Both assertion (A) and reason (R) are true and reason (R) is the correct explanation of assertion (A).b)Both assertion (A) and reason (R) are true but reason (R) is not the correct explanation of assertion (A).c)Assertion (A) is true but reason (R) is false.d)Assertion (A) is false but reason (R) is true.Correct 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 Directions: In the following questions, a statement of assertion (A) is followed by a statement of reason (R). Mark the correct choice as:Assertion (A): The monetary policy is a policy formulated by the central bank.Reason (R): The policy involves measures taken to regulate the supply of money, availability, and cost of credit in the economy.a)Both assertion (A) and reason (R) are true and reason (R) is the correct explanation of assertion (A).b)Both assertion (A) and reason (R) are true but reason (R) is not the correct explanation of assertion (A).c)Assertion (A) is true but reason (R) is false.d)Assertion (A) is false but reason (R) is true.Correct 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 Directions: In the following questions, a statement of assertion (A) is followed by a statement of reason (R). Mark the correct choice as:Assertion (A): The monetary policy is a policy formulated by the central bank.Reason (R): The policy involves measures taken to regulate the supply of money, availability, and cost of credit in the economy.a)Both assertion (A) and reason (R) are true and reason (R) is the correct explanation of assertion (A).b)Both assertion (A) and reason (R) are true but reason (R) is not the correct explanation of assertion (A).c)Assertion (A) is true but reason (R) is false.d)Assertion (A) is false but reason (R) is true.Correct answer is option 'A'. Can you explain this answer?.
Solutions for Directions: In the following questions, a statement of assertion (A) is followed by a statement of reason (R). Mark the correct choice as:Assertion (A): The monetary policy is a policy formulated by the central bank.Reason (R): The policy involves measures taken to regulate the supply of money, availability, and cost of credit in the economy.a)Both assertion (A) and reason (R) are true and reason (R) is the correct explanation of assertion (A).b)Both assertion (A) and reason (R) are true but reason (R) is not the correct explanation of assertion (A).c)Assertion (A) is true but reason (R) is false.d)Assertion (A) is false but reason (R) is true.Correct answer is option 'A'. Can you explain this answer? in English & in Hindi are available as part of our courses for Commerce. Download more important topics, notes, lectures and mock test series for Commerce Exam by signing up for free.
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