Class 12 Exam > Class 12 Questions > Assertion (A): The currency notes do not carr...
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Assertion (A): The currency notes do not carry as much value in it as is denominated, still has general acceptance.
Reason (R): Currency notes are backed by a legal promise from the central bank and central government of the country.
Reason (R): Currency notes are backed by a legal promise from the central bank and central government of the country.
- 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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Assertion (A): The currency notes do not carry as much value in it as ...
Paper Currency in general don’t have any market value, it is the legal promise and trust in the banking system that makes these paper currencies accept as a medium of exchange.
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Assertion (A): The currency notes do not carry as much value in it as ...
Assertion (A): The currency notes do not carry as much value in it as is denominated, still has general acceptance.
Reason (R): Currency notes are backed by a legal promise from the central bank and central government of the country.
The correct answer is option A. Both Assertion (A) and Reason (R) are true, and Reason (R) is the correct explanation of Assertion (A).
Explanation:
Currency notes are widely accepted as a medium of exchange in most economies around the world. They facilitate transactions and serve as a store of value. However, the value denominated on a currency note does not necessarily represent the intrinsic value of the note itself. The value of currency notes is derived from the trust and confidence that people have in the issuing authority, which is usually the central bank and the central government of the country.
Currency notes are backed by a legal promise from the central bank and central government. This means that the issuing authority guarantees the value of the currency notes and ensures their general acceptance. The central bank has the authority to issue and control the supply of currency, and it maintains the value of the currency through various mechanisms such as controlling inflation, managing interest rates, and maintaining foreign exchange reserves.
The value of currency notes is based on the trust and confidence that people have in the stability of the issuing authority and the economy as a whole. If people lose trust in the currency or the issuing authority, the value of the currency may decline, leading to hyperinflation or even a complete loss of general acceptance.
In conclusion, currency notes do not carry as much value in it as is denominated, but they still have general acceptance because they are backed by a legal promise from the central bank and central government of the country. This ensures the trust and confidence of the public in the value and acceptability of the currency notes.
Reason (R): Currency notes are backed by a legal promise from the central bank and central government of the country.
The correct answer is option A. Both Assertion (A) and Reason (R) are true, and Reason (R) is the correct explanation of Assertion (A).
Explanation:
Currency notes are widely accepted as a medium of exchange in most economies around the world. They facilitate transactions and serve as a store of value. However, the value denominated on a currency note does not necessarily represent the intrinsic value of the note itself. The value of currency notes is derived from the trust and confidence that people have in the issuing authority, which is usually the central bank and the central government of the country.
Currency notes are backed by a legal promise from the central bank and central government. This means that the issuing authority guarantees the value of the currency notes and ensures their general acceptance. The central bank has the authority to issue and control the supply of currency, and it maintains the value of the currency through various mechanisms such as controlling inflation, managing interest rates, and maintaining foreign exchange reserves.
The value of currency notes is based on the trust and confidence that people have in the stability of the issuing authority and the economy as a whole. If people lose trust in the currency or the issuing authority, the value of the currency may decline, leading to hyperinflation or even a complete loss of general acceptance.
In conclusion, currency notes do not carry as much value in it as is denominated, but they still have general acceptance because they are backed by a legal promise from the central bank and central government of the country. This ensures the trust and confidence of the public in the value and acceptability of the currency notes.
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Assertion (A): The currency notes do not carry as much value in it as is denominated, still has general acceptance.Reason (R): Currency notes are backed by a legal promise from the central bank and central government of the country.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 falsed)Assertion (A) is false, but Reason (R) is trueCorrect answer is option 'A'. Can you explain this answer?
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Assertion (A): The currency notes do not carry as much value in it as is denominated, still has general acceptance.Reason (R): Currency notes are backed by a legal promise from the central bank and central government of the country.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 falsed)Assertion (A) is false, but Reason (R) is trueCorrect answer is option 'A'. Can you explain this answer? for Class 12 2024 is part of Class 12 preparation. The Question and answers have been prepared according to the Class 12 exam syllabus. Information about Assertion (A): The currency notes do not carry as much value in it as is denominated, still has general acceptance.Reason (R): Currency notes are backed by a legal promise from the central bank and central government of the country.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 falsed)Assertion (A) is false, but Reason (R) is trueCorrect answer is option 'A'. Can you explain this answer? covers all topics & solutions for Class 12 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Assertion (A): The currency notes do not carry as much value in it as is denominated, still has general acceptance.Reason (R): Currency notes are backed by a legal promise from the central bank and central government of the country.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 falsed)Assertion (A) is false, but Reason (R) is trueCorrect answer is option 'A'. Can you explain this answer?.
Assertion (A): The currency notes do not carry as much value in it as is denominated, still has general acceptance.Reason (R): Currency notes are backed by a legal promise from the central bank and central government of the country.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 falsed)Assertion (A) is false, but Reason (R) is trueCorrect answer is option 'A'. Can you explain this answer? for Class 12 2024 is part of Class 12 preparation. The Question and answers have been prepared according to the Class 12 exam syllabus. Information about Assertion (A): The currency notes do not carry as much value in it as is denominated, still has general acceptance.Reason (R): Currency notes are backed by a legal promise from the central bank and central government of the country.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 falsed)Assertion (A) is false, but Reason (R) is trueCorrect answer is option 'A'. Can you explain this answer? covers all topics & solutions for Class 12 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Assertion (A): The currency notes do not carry as much value in it as is denominated, still has general acceptance.Reason (R): Currency notes are backed by a legal promise from the central bank and central government of the country.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 falsed)Assertion (A) is false, but Reason (R) is trueCorrect answer is option 'A'. Can you explain this answer?.
Solutions for Assertion (A): The currency notes do not carry as much value in it as is denominated, still has general acceptance.Reason (R): Currency notes are backed by a legal promise from the central bank and central government of the country.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 falsed)Assertion (A) is false, but Reason (R) is trueCorrect answer is option 'A'. Can you explain this answer? in English & in Hindi are available as part of our courses for Class 12.
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