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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): Net Demand Deposits (and not Gross Demand Deposits) of Commercial Banks are included in Money Supply.
Reason (R): Inter-Bank Deposits are the deposits held by banks on behalf of other banks and do not belong to the public.
- 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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Verified Answer
Directions: In the following questions, a statement of assertion (A) ...
Money supply refers to the total stock of money of all types ( currency as well as demand deposits) held by the people of a country at a given point of time.
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Money supply is measured in several ways among which M1 is a type of measurement that measures the money as a medium of exchange function.
M1= C+ DD+ OD
where,
C: It refers to currency held by public in terms of coins and paper notes.
DD: It refers demand deposits of the people with the commercial bank.
OD: These includes other deposits with public financial institution, foreign central banks and international financial institution.
Most Upvoted Answer
Directions: In the following questions, a statement of assertion (A) ...
Assertion and Reasoning:
Assertion (A): Net Demand Deposits (and not Gross Demand Deposits) of Commercial Banks are included in Money Supply.
Reason (R): Inter-Bank Deposits are the deposits held by banks on behalf of other banks and do not belong to the public.
Explanation:
Money supply refers to the total amount of money in circulation in an economy. It includes all the currency in circulation, demand deposits with commercial banks, and other liquid instruments like treasury bills and government securities. Net demand deposits refer to the demand deposits of commercial banks that are available for withdrawal by the public.
The given assertion is true because net demand deposits are included in the money supply as they represent the money held by the public in the form of demand deposits with commercial banks. Gross demand deposits, on the other hand, include inter-bank deposits that do not belong to the public and are not available for withdrawal.
The given reasoning is also true because inter-bank deposits are the deposits held by banks on behalf of other banks and do not belong to the public. These deposits are not included in the money supply as they do not represent the money held by the public.
Therefore, both the assertion and reasoning are true, and the reasoning explains the assertion correctly.
Conclusion:
The correct choice is option (A) - Both assertion (A) and reason (R) are true and reason (R) is the correct explanation of assertion (A).
Assertion (A): Net Demand Deposits (and not Gross Demand Deposits) of Commercial Banks are included in Money Supply.
Reason (R): Inter-Bank Deposits are the deposits held by banks on behalf of other banks and do not belong to the public.
Explanation:
Money supply refers to the total amount of money in circulation in an economy. It includes all the currency in circulation, demand deposits with commercial banks, and other liquid instruments like treasury bills and government securities. Net demand deposits refer to the demand deposits of commercial banks that are available for withdrawal by the public.
The given assertion is true because net demand deposits are included in the money supply as they represent the money held by the public in the form of demand deposits with commercial banks. Gross demand deposits, on the other hand, include inter-bank deposits that do not belong to the public and are not available for withdrawal.
The given reasoning is also true because inter-bank deposits are the deposits held by banks on behalf of other banks and do not belong to the public. These deposits are not included in the money supply as they do not represent the money held by the public.
Therefore, both the assertion and reasoning are true, and the reasoning explains the assertion correctly.
Conclusion:
The correct choice 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): Net Demand Deposits (and not Gross Demand Deposits) of Commercial Banks are included in Money Supply.Reason (R): Inter-Bank Deposits are the deposits held by banks on behalf of other banks and do not belong to the public.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): Net Demand Deposits (and not Gross Demand Deposits) of Commercial Banks are included in Money Supply.Reason (R): Inter-Bank Deposits are the deposits held by banks on behalf of other banks and do not belong to the public.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): Net Demand Deposits (and not Gross Demand Deposits) of Commercial Banks are included in Money Supply.Reason (R): Inter-Bank Deposits are the deposits held by banks on behalf of other banks and do not belong to the public.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): Net Demand Deposits (and not Gross Demand Deposits) of Commercial Banks are included in Money Supply.Reason (R): Inter-Bank Deposits are the deposits held by banks on behalf of other banks and do not belong to the public.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?.
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): Net Demand Deposits (and not Gross Demand Deposits) of Commercial Banks are included in Money Supply.Reason (R): Inter-Bank Deposits are the deposits held by banks on behalf of other banks and do not belong to the public.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): Net Demand Deposits (and not Gross Demand Deposits) of Commercial Banks are included in Money Supply.Reason (R): Inter-Bank Deposits are the deposits held by banks on behalf of other banks and do not belong to the public.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): Net Demand Deposits (and not Gross Demand Deposits) of Commercial Banks are included in Money Supply.Reason (R): Inter-Bank Deposits are the deposits held by banks on behalf of other banks and do not belong to the public.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): Net Demand Deposits (and not Gross Demand Deposits) of Commercial Banks are included in Money Supply.Reason (R): Inter-Bank Deposits are the deposits held by banks on behalf of other banks and do not belong to the public.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.
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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): Net Demand Deposits (and not Gross Demand Deposits) of Commercial Banks are included in Money Supply.Reason (R): Inter-Bank Deposits are the deposits held by banks on behalf of other banks and do not belong to the public.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?, 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 (A): Net Demand Deposits (and not Gross Demand Deposits) of Commercial Banks are included in Money Supply.Reason (R): Inter-Bank Deposits are the deposits held by banks on behalf of other banks and do not belong to the public.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? 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 (A): Net Demand Deposits (and not Gross Demand Deposits) of Commercial Banks are included in Money Supply.Reason (R): Inter-Bank Deposits are the deposits held by banks on behalf of other banks and do not belong to the public.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? theory, EduRev gives you an
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