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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): M1 is the least liquid measure of money supply.
Reason (R): M1 includes the currency in circulation, demand deposits with the bank and other deposits with the RBI.
- 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 'D'. Can you explain this answer?
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Directions: In the following questions, a statement of assertion (A) ...
M1 is the most liquid measure of money supply as it includes all forms of assets that are easily exchangeable as payment for goods and services.
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It includes coins and currency in circulation, demand deposits, traveler's checks, and other checkable deposits.
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Directions: In the following questions, a statement of assertion (A) ...
Assertion (A): M1 is the least liquid measure of money supply.
Reason (R): M1 includes the currency in circulation, demand deposits with the bank, and other deposits with the RBI.
The correct answer is option D, Assertion (A) is false but Reason (R) is true.
Explanation:
Money Supply:
Money supply refers to the total amount of money available in an economy at a given point in time. It includes currency notes and coins, demand deposits with banks, and other liquid assets that can be readily used as a medium of exchange.
M1:
M1 is a narrow measure of money supply that includes the most liquid forms of money. It consists of currency notes and coins in circulation and demand deposits with commercial banks. M1 does not include time deposits or other less liquid forms of money.
Liquidity:
Liquidity refers to the ease with which an asset can be converted into cash without causing significant price distortions. The more liquid an asset is, the easier it is to convert into cash.
Explanation of Assertion (A):
The assertion states that M1 is the least liquid measure of money supply. This means that compared to other measures of money supply, M1 is the least easily convertible into cash. This is because M1 includes only the most liquid forms of money, namely currency notes and coins in circulation and demand deposits with commercial banks.
Explanation of Reason (R):
The reason correctly states that M1 includes currency in circulation, demand deposits with the bank, and other deposits with the Reserve Bank of India (RBI). Currency in circulation refers to the physical notes and coins that are in the hands of the public. Demand deposits with banks are funds held in checking accounts that can be withdrawn on demand. Other deposits with the RBI include deposits made by commercial banks with the central bank.
Conclusion:
The reason provided in Reason (R) is true, as it accurately describes the components of M1. However, the assertion in Assertion (A) is false because M1 is actually the most liquid measure of money supply, not the least liquid. M1 includes the most easily convertible forms of money, making it the most liquid measure.
Reason (R): M1 includes the currency in circulation, demand deposits with the bank, and other deposits with the RBI.
The correct answer is option D, Assertion (A) is false but Reason (R) is true.
Explanation:
Money Supply:
Money supply refers to the total amount of money available in an economy at a given point in time. It includes currency notes and coins, demand deposits with banks, and other liquid assets that can be readily used as a medium of exchange.
M1:
M1 is a narrow measure of money supply that includes the most liquid forms of money. It consists of currency notes and coins in circulation and demand deposits with commercial banks. M1 does not include time deposits or other less liquid forms of money.
Liquidity:
Liquidity refers to the ease with which an asset can be converted into cash without causing significant price distortions. The more liquid an asset is, the easier it is to convert into cash.
Explanation of Assertion (A):
The assertion states that M1 is the least liquid measure of money supply. This means that compared to other measures of money supply, M1 is the least easily convertible into cash. This is because M1 includes only the most liquid forms of money, namely currency notes and coins in circulation and demand deposits with commercial banks.
Explanation of Reason (R):
The reason correctly states that M1 includes currency in circulation, demand deposits with the bank, and other deposits with the Reserve Bank of India (RBI). Currency in circulation refers to the physical notes and coins that are in the hands of the public. Demand deposits with banks are funds held in checking accounts that can be withdrawn on demand. Other deposits with the RBI include deposits made by commercial banks with the central bank.
Conclusion:
The reason provided in Reason (R) is true, as it accurately describes the components of M1. However, the assertion in Assertion (A) is false because M1 is actually the most liquid measure of money supply, not the least liquid. M1 includes the most easily convertible forms of money, making it the most liquid measure.
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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): M1 is the least liquid measure of money supply.Reason (R): M1 includes the currency in circulation, demand deposits with the bank and other deposits with the RBI.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 'D'. 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): M1 is the least liquid measure of money supply.Reason (R): M1 includes the currency in circulation, demand deposits with the bank and other deposits with the RBI.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 'D'. 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): M1 is the least liquid measure of money supply.Reason (R): M1 includes the currency in circulation, demand deposits with the bank and other deposits with the RBI.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 'D'. 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): M1 is the least liquid measure of money supply.Reason (R): M1 includes the currency in circulation, demand deposits with the bank and other deposits with the RBI.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 'D'. 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): M1 is the least liquid measure of money supply.Reason (R): M1 includes the currency in circulation, demand deposits with the bank and other deposits with the RBI.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 'D'. 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): M1 is the least liquid measure of money supply.Reason (R): M1 includes the currency in circulation, demand deposits with the bank and other deposits with the RBI.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 'D'. 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): M1 is the least liquid measure of money supply.Reason (R): M1 includes the currency in circulation, demand deposits with the bank and other deposits with the RBI.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 'D'. 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): M1 is the least liquid measure of money supply.Reason (R): M1 includes the currency in circulation, demand deposits with the bank and other deposits with the RBI.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 'D'. Can you explain this answer? in English & in Hindi are available as part of our courses for Commerce.
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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 (A): M1 is the least liquid measure of money supply.Reason (R): M1 includes the currency in circulation, demand deposits with the bank and other deposits with the RBI.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 'D'. 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 (A): M1 is the least liquid measure of money supply.Reason (R): M1 includes the currency in circulation, demand deposits with the bank and other deposits with the RBI.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 'D'. 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): M1 is the least liquid measure of money supply.Reason (R): M1 includes the currency in circulation, demand deposits with the bank and other deposits with the RBI.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 'D'. 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): M1 is the least liquid measure of money supply.Reason (R): M1 includes the currency in circulation, demand deposits with the bank and other deposits with the RBI.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 'D'. 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 (A): M1 is the least liquid measure of money supply.Reason (R): M1 includes the currency in circulation, demand deposits with the bank and other deposits with the RBI.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 'D'. Can you explain this answer? tests, examples and also practice Commerce tests.
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