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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 banker to the government, works as a financial advisor.
Reason (R): Government borrows internally from banks and the general 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 'C'. Can you explain this answer?
Verified Answer
Directions: In the following questions, a statement of assertion (A) ...
The central Bank acts as a banker and financial advisor to the government. As a banker to the government, it performs the following functions.
1. It manages the account of the government
2 It accepts receipts from the government and makes payment on behalf of it.
3 It grants short-term loans and credit to the government.
4 It performs the task of managing the public debt.
5 The central bank advises the government on all banking and financial matters.
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 Reason in Central Banking
Assertion: Central bank as a banker to the government, works as a financial advisor.
Reason: Government borrows internally from banks and the general public.
The correct answer is option 'C' i.e., Assertion (A) is true but reason (R) is false.
Explanation:
Central banks are the apex monetary institutions in any economy and they perform several crucial functions, such as regulating the money supply, maintaining price stability, and ensuring financial stability. One of the primary roles of the central bank is to act as a banker to the government. This means that the central bank provides a range of financial services to the government, such as managing the government's accounts, making payments on behalf of the government, and issuing government securities.
However, the assertion that the central bank works as a financial advisor to the government is not entirely accurate. While central banks may provide advice and guidance to the government on monetary and fiscal policy matters, they are not primarily financial advisors. Financial advice is usually provided by commercial banks, investment banks, and other financial institutions.
The reason given for the assertion is also not entirely accurate. While it is true that governments borrow from banks and the general public to finance their expenditures, this is not the only reason why central banks act as bankers to the government. Central banks also play a crucial role in ensuring that the government's financial transactions are conducted smoothly and efficiently.
In conclusion, while the assertion that the central bank acts as a banker to the government is true, the assertion that they work as financial advisors is not entirely accurate. Similarly, the reason given for the assertion is not entirely accurate, as it oversimplifies the complex relationship between governments, central banks, and financial markets.
Assertion: Central bank as a banker to the government, works as a financial advisor.
Reason: Government borrows internally from banks and the general public.
The correct answer is option 'C' i.e., Assertion (A) is true but reason (R) is false.
Explanation:
Central banks are the apex monetary institutions in any economy and they perform several crucial functions, such as regulating the money supply, maintaining price stability, and ensuring financial stability. One of the primary roles of the central bank is to act as a banker to the government. This means that the central bank provides a range of financial services to the government, such as managing the government's accounts, making payments on behalf of the government, and issuing government securities.
However, the assertion that the central bank works as a financial advisor to the government is not entirely accurate. While central banks may provide advice and guidance to the government on monetary and fiscal policy matters, they are not primarily financial advisors. Financial advice is usually provided by commercial banks, investment banks, and other financial institutions.
The reason given for the assertion is also not entirely accurate. While it is true that governments borrow from banks and the general public to finance their expenditures, this is not the only reason why central banks act as bankers to the government. Central banks also play a crucial role in ensuring that the government's financial transactions are conducted smoothly and efficiently.
In conclusion, while the assertion that the central bank acts as a banker to the government is true, the assertion that they work as financial advisors is not entirely accurate. Similarly, the reason given for the assertion is not entirely accurate, as it oversimplifies the complex relationship between governments, central banks, and financial markets.
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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 banker to the government, works as a financial advisor.Reason (R): Government borrows internally from banks and the general 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 'C'. 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 banker to the government, works as a financial advisor.Reason (R): Government borrows internally from banks and the general 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 '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 (A): Central bank as a banker to the banker to the government, works as a financial advisor.Reason (R): Government borrows internally from banks and the general 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 '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 (A): Central bank as a banker to the banker to the government, works as a financial advisor.Reason (R): Government borrows internally from banks and the general 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 'C'. 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 banker to the government, works as a financial advisor.Reason (R): Government borrows internally from banks and the general 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 '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 (A): Central bank as a banker to the banker to the government, works as a financial advisor.Reason (R): Government borrows internally from banks and the general 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 '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 (A): Central bank as a banker to the banker to the government, works as a financial advisor.Reason (R): Government borrows internally from banks and the general 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 '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 (A): Central bank as a banker to the banker to the government, works as a financial advisor.Reason (R): Government borrows internally from banks and the general 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 'C'. 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): Central bank as a banker to the banker to the government, works as a financial advisor.Reason (R): Government borrows internally from banks and the general 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 '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 (A): Central bank as a banker to the banker to the government, works as a financial advisor.Reason (R): Government borrows internally from banks and the general 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 '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 (A): Central bank as a banker to the banker to the government, works as a financial advisor.Reason (R): Government borrows internally from banks and the general 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 '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 (A): Central bank as a banker to the banker to the government, works as a financial advisor.Reason (R): Government borrows internally from banks and the general 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 'C'. Can you explain this answer? tests, examples and also practice Commerce tests.
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