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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): Money supply includes the least liquid measure of the Money supply.
Reason (R): Money supply includes the currency with public outside banks and demand deposits with 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 'D'. Can you explain this answer?
Most Upvoted Answer
Directions: In the following questions, a statement of assertion (A) i...
Assertion is false, Money supply includes a most liquid measure of Money supply.
Community Answer
Directions: In the following questions, a statement of assertion (A) i...
Assertion (A) vs Reason (R) Analysis:
Money supply includes the least liquid measure of the Money supply because:

Assertion (A):
- The assertion is false because money supply actually includes the most liquid measures of money, such as currency in circulation and demand deposits.
- The least liquid measures of money supply are time deposits and savings deposits, which are not included in the money supply.

Reason (R):
- The reason is true as it correctly identifies the components of the money supply, which include currency held by the public outside banks and demand deposits held by banks.
- Currency with the public and demand deposits are considered highly liquid components of the money supply as they can be easily used for transactions.
Therefore, while the reason (R) is correct in explaining the components of the money supply, the assertion (A) is false as it incorrectly states that the least liquid measure is included in the money supply.
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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): Money supply includes the least liquid measure of the Money supply.Reason (R): Money supply includes the currency with public outside banks and demand deposits with 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 'D'. Can you explain this answer?
Question Description
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): Money supply includes the least liquid measure of the Money supply.Reason (R): Money supply includes the currency with public outside banks and demand deposits with 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 '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): Money supply includes the least liquid measure of the Money supply.Reason (R): Money supply includes the currency with public outside banks and demand deposits with 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 '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): Money supply includes the least liquid measure of the Money supply.Reason (R): Money supply includes the currency with public outside banks and demand deposits with 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 'D'. Can you explain this answer?.
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