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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): Central Bank as a banker to the government, works as a custodian of cash reserves.
Reason(R): The Central Bank acts as a clearinghouse for the transfer and settlement of mutual claims of commercial banks.
- 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 'B'. Can you explain this answer?
Verified Answer
Directions: In the following questions, a statement of assertion (A) ...
Central bank is an apex regulatory institution that controls the entire banking system of a country. The central bank act as a custodian of the cash reserves of the commercial bank as the commercial banks have to maintain a proportion of their total deposits as reserves in the form of cash with the central bank as a part of legal requirement.
This question is part of UPSC exam. View all Commerce courses
Most Upvoted Answer
Directions: In the following questions, a statement of assertion (A) ...
Assertion and Reasoning questions are designed to test the logical and analytical skills of the candidates. Let's understand the given Assertion and Reasoning statement and find out the correct answer.
Assertion (A): Central Bank as a banker to the government, works as a custodian of cash reserves.
Reason (R): The Central Bank acts as a clearinghouse for the transfer and settlement of mutual claims of commercial banks.
Explanation:
Central Bank holds the role of a banker to the government. It is responsible for managing the financial transactions of the government. The government keeps its cash reserves with the Central Bank. The Central Bank works as a custodian of these cash reserves. It keeps these reserves safe and secure.
On the other hand, the Central Bank also acts as a clearinghouse for the transfer and settlement of mutual claims of commercial banks. The Central Bank provides a platform where commercial banks can settle their claims with each other. It ensures that the transfer of funds between banks is done smoothly and efficiently.
Therefore, both Assertion (A) and Reasoning (R) are true. But the Reasoning (R) is not the correct explanation of Assertion (A). The two statements are independent of each other, and both are correct in their own context. Hence, the correct answer is option (B).
Conclusion:
The Assertion and Reasoning statement discussed above helps us understand the role of Central Bank as a banker to the government and a clearinghouse for commercial banks. Candidates must read the statement carefully and analyze it logically to arrive at the correct answer.
Assertion (A): Central Bank as a banker to the government, works as a custodian of cash reserves.
Reason (R): The Central Bank acts as a clearinghouse for the transfer and settlement of mutual claims of commercial banks.
Explanation:
Central Bank holds the role of a banker to the government. It is responsible for managing the financial transactions of the government. The government keeps its cash reserves with the Central Bank. The Central Bank works as a custodian of these cash reserves. It keeps these reserves safe and secure.
On the other hand, the Central Bank also acts as a clearinghouse for the transfer and settlement of mutual claims of commercial banks. The Central Bank provides a platform where commercial banks can settle their claims with each other. It ensures that the transfer of funds between banks is done smoothly and efficiently.
Therefore, both Assertion (A) and Reasoning (R) are true. But the Reasoning (R) is not the correct explanation of Assertion (A). The two statements are independent of each other, and both are correct in their own context. Hence, the correct answer is option (B).
Conclusion:
The Assertion and Reasoning statement discussed above helps us understand the role of Central Bank as a banker to the government and a clearinghouse for commercial banks. Candidates must read the statement carefully and analyze it logically to arrive at the correct 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): Central Bank as a banker to the government, works as a custodian of cash reserves.Reason(R): The Central Bank acts as a clearinghouse for the transfer and settlement of mutual claims of commercial banks.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 'B'. 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): Central Bank as a banker to the government, works as a custodian of cash reserves.Reason(R): The Central Bank acts as a clearinghouse for the transfer and settlement of mutual claims of commercial banks.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 'B'. 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): Central Bank as a banker to the government, works as a custodian of cash reserves.Reason(R): The Central Bank acts as a clearinghouse for the transfer and settlement of mutual claims of commercial banks.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 'B'. 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): Central Bank as a banker to the government, works as a custodian of cash reserves.Reason(R): The Central Bank acts as a clearinghouse for the transfer and settlement of mutual claims of commercial banks.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 'B'. 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): Central Bank as a banker to the government, works as a custodian of cash reserves.Reason(R): The Central Bank acts as a clearinghouse for the transfer and settlement of mutual claims of commercial banks.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 'B'. 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): Central Bank as a banker to the government, works as a custodian of cash reserves.Reason(R): The Central Bank acts as a clearinghouse for the transfer and settlement of mutual claims of commercial banks.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 'B'. 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): Central Bank as a banker to the government, works as a custodian of cash reserves.Reason(R): The Central Bank acts as a clearinghouse for the transfer and settlement of mutual claims of commercial banks.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 'B'. 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): Central Bank as a banker to the government, works as a custodian of cash reserves.Reason(R): The Central Bank acts as a clearinghouse for the transfer and settlement of mutual claims of commercial banks.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 'B'. Can you explain this answer? in English & in Hindi are available as part of our courses for Commerce.
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