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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) ...
The monetary policy is a policy formulated by the central bank, i.e., RBI (Reserve Bank of India) and relates to the monetary matters of the country. The policy involves measures taken to regulate the supply of money, availability, and cost of credit in the economy.
The policy also oversees distribution of credit among users as well as the borrowing and lending rates of interest. In a developing country like India, monetary policy is significant in the promotion of economic growth.
The various instruments of monetary policy include variations in bank rates, other interest rates, selective credit controls, supply of currency, variations in reserve requirements and open market operations.
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Most Upvoted Answer
Directions: In the following questions, a statement of assertion (A) ...
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.

Explanation:
The monetary policy is a crucial tool used by the central bank to manage and regulate the economy. It involves various measures taken to control the supply of money, availability, and cost of credit in the economy. Let's analyze each statement separately to understand their validity and relationship.

Assertion (A): The monetary policy is a policy formulated by the central bank.
The assertion is true. The monetary policy is indeed a policy formulated by the central bank. In most countries, the central bank has the authority to implement and regulate monetary policy. It is responsible for maintaining price stability, controlling inflation, and promoting economic growth through the implementation of suitable monetary measures.

Reason (R): The policy involves measures taken to regulate the supply of money, availability, and cost of credit in the economy.
The reason is also true and provides a correct explanation for the assertion. The monetary policy involves various measures taken by the central bank to regulate the supply of money, availability, and cost of credit in the economy. These measures include setting interest rates, reserve requirements, open market operations, and other tools to influence the money supply and credit conditions.

Conclusion:
Both the assertion and the reason are true, and the reason correctly explains the assertion. The central bank formulates and implements the monetary policy to regulate the supply of money, availability, and cost of credit in the economy. Therefore, the correct answer is option 'A': Both assertion (A) and reason (R) are true, and reason (R) is the correct explanation of assertion (A).
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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?.
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