Commerce Exam  >  Commerce Questions  >   Directions: In the following questions, a st... Start Learning for Free
Directions: In the following questions, a statement of assertion (A) is followed by a statement of reason (R). Mark the correct choice as:
Assertion: Central bank uses many tools such as Bank rate, repo rate, reverse repo rate etc. to control money supply in the economy.
Reason: Commercial bank is the apex Bank of India.
  • 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 'C'. Can you explain this answer?
Verified Answer
Directions: In the following questions, a statement of assertion (A) ...
Reverse Repo rate is the short term borrowing rate at which RBI borrows money from banks. The central bank uses this tool to change the money supply in the economy. An increase in the reverse repo rate means that the banks will get a higher rate of interest from RBI.
View all questions of this test
Most Upvoted Answer
Directions: In the following questions, a statement of assertion (A) ...
Explanation:


The correct answer is option 'C', i.e., Assertion (A) is true but reason (R) is false.


Assertion: Central bank uses many tools such as Bank rate, repo rate, reverse repo rate etc. to control money supply in the economy.


Reason: Commercial bank is the apex Bank of India.


The given assertion is correct as the central bank of a country (in India, it is the Reserve Bank of India) uses various monetary policy tools such as Bank rate, repo rate, reverse repo rate, etc. to control the money supply in the economy. These tools are used to regulate the interest rates in the economy, which in turn affects the borrowing and lending behavior of individuals, companies, and banks.


However, the given reason is incorrect as the commercial bank is not the apex bank of India. The apex bank of India is the Reserve Bank of India, which is responsible for formulating and implementing monetary policy in the country. Commercial banks are regulated by the Reserve Bank of India and are one of the many players in the banking system.


Hence, option 'C' is the correct answer as the assertion is true but the reason is false.
Attention Commerce Students!
To make sure you are not studying endlessly, EduRev has designed Commerce study material, with Structured Courses, Videos, & Test Series. Plus get personalized analysis, doubt solving and improvement plans to achieve a great score in Commerce.
Explore Courses for Commerce exam

Top Courses for Commerce

Directions: In the following questions, a statement of assertion (A) is followed by a statement of reason (R). Mark the correct choice as:Assertion: Central bank uses many tools such as Bank rate, repo rate, reverse repo rate etc. to control money supply in the economy.Reason: Commercial bank is the apex Bank of India.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 'C'. Can you explain this answer?
Question Description
Directions: In the following questions, a statement of assertion (A) is followed by a statement of reason (R). Mark the correct choice as:Assertion: Central bank uses many tools such as Bank rate, repo rate, reverse repo rate etc. to control money supply in the economy.Reason: Commercial bank is the apex Bank of India.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 'C'. 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: Central bank uses many tools such as Bank rate, repo rate, reverse repo rate etc. to control money supply in the economy.Reason: Commercial bank is the apex Bank of India.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 'C'. 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: Central bank uses many tools such as Bank rate, repo rate, reverse repo rate etc. to control money supply in the economy.Reason: Commercial bank is the apex Bank of India.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 'C'. 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: Central bank uses many tools such as Bank rate, repo rate, reverse repo rate etc. to control money supply in the economy.Reason: Commercial bank is the apex Bank of India.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 'C'. 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.
Here you can find the meaning of Directions: In the following questions, a statement of assertion (A) is followed by a statement of reason (R). Mark the correct choice as:Assertion: Central bank uses many tools such as Bank rate, repo rate, reverse repo rate etc. to control money supply in the economy.Reason: Commercial bank is the apex Bank of India.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 'C'. Can you explain this answer? defined & explained in the simplest way possible. Besides giving the explanation of Directions: In the following questions, a statement of assertion (A) is followed by a statement of reason (R). Mark the correct choice as:Assertion: Central bank uses many tools such as Bank rate, repo rate, reverse repo rate etc. to control money supply in the economy.Reason: Commercial bank is the apex Bank of India.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 'C'. Can you explain this answer?, a detailed solution 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: Central bank uses many tools such as Bank rate, repo rate, reverse repo rate etc. to control money supply in the economy.Reason: Commercial bank is the apex Bank of India.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 'C'. Can you explain this answer? has been provided alongside types of Directions: In the following questions, a statement of assertion (A) is followed by a statement of reason (R). Mark the correct choice as:Assertion: Central bank uses many tools such as Bank rate, repo rate, reverse repo rate etc. to control money supply in the economy.Reason: Commercial bank is the apex Bank of India.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 'C'. Can you explain this answer? theory, EduRev gives you an ample number of questions to practice Directions: In the following questions, a statement of assertion (A) is followed by a statement of reason (R). Mark the correct choice as:Assertion: Central bank uses many tools such as Bank rate, repo rate, reverse repo rate etc. to control money supply in the economy.Reason: Commercial bank is the apex Bank of India.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 'C'. Can you explain this answer? tests, examples and also practice Commerce tests.
Explore Courses for Commerce exam

Top Courses for Commerce

Explore Courses
Signup for Free!
Signup to see your scores go up within 7 days! Learn & Practice with 1000+ FREE Notes, Videos & Tests.
10M+ students study on EduRev