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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): The speculative demand for money increases when interest rates are expected to fall in the future.
Reason (R): People prefer to hold money rather than bonds to avoid capital losses when they expect interest rates to rise.
  • a)
    If both Assertion and Reason are true and Reason is the correct explanation of Assertion
  • b)
    If both Assertion and Reason are true but Reason is not the correct explanation of Assertion
  • c)
    If Assertion is true but Reason is false
  • d)
    If both Assertion and Reason are false
Correct answer is option 'A'. Can you explain this answer?
Verified Answer
Directions: In the following questions, a statement of assertion (A) i...
- Assertion: The assertion is correct. When people expect interest rates to fall, they anticipate that bond prices will increase, leading to capital gains. This expectation drives them to hold onto money instead of bonds, thereby increasing speculative demand for money.
- Reason: The reason is also correct. It accurately reflects the behavior of investors who opt to hold money to avoid potential losses from rising interest rates, which would lead to falling bond prices.
- Since both the assertion and reason are true, and the reason explains the assertion, Option A is the correct choice.
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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 asAssertion (A): The speculative demand for money increases when interest rates are expected to fall in the future.Reason (R): People prefer to hold money rather than bonds to avoid capital losses when they expect interest rates to rise.a)If both Assertion and Reason are true and Reason is the correct explanation of Assertionb)If both Assertion and Reason are true but Reason is not the correct explanation of Assertionc)If Assertion is true but Reason is falsed)If both Assertion and Reason are falseCorrect answer is option 'A'. 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 asAssertion (A): The speculative demand for money increases when interest rates are expected to fall in the future.Reason (R): People prefer to hold money rather than bonds to avoid capital losses when they expect interest rates to rise.a)If both Assertion and Reason are true and Reason is the correct explanation of Assertionb)If both Assertion and Reason are true but Reason is not the correct explanation of Assertionc)If Assertion is true but Reason is falsed)If both Assertion and Reason are falseCorrect answer is option 'A'. Can you explain this answer? for Humanities/Arts 2024 is part of Humanities/Arts preparation. The Question and answers have been prepared according to the Humanities/Arts 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 asAssertion (A): The speculative demand for money increases when interest rates are expected to fall in the future.Reason (R): People prefer to hold money rather than bonds to avoid capital losses when they expect interest rates to rise.a)If both Assertion and Reason are true and Reason is the correct explanation of Assertionb)If both Assertion and Reason are true but Reason is not the correct explanation of Assertionc)If Assertion is true but Reason is falsed)If both Assertion and Reason are falseCorrect answer is option 'A'. Can you explain this answer? covers all topics & solutions for Humanities/Arts 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 asAssertion (A): The speculative demand for money increases when interest rates are expected to fall in the future.Reason (R): People prefer to hold money rather than bonds to avoid capital losses when they expect interest rates to rise.a)If both Assertion and Reason are true and Reason is the correct explanation of Assertionb)If both Assertion and Reason are true but Reason is not the correct explanation of Assertionc)If Assertion is true but Reason is falsed)If both Assertion and Reason are falseCorrect answer is option 'A'. 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 asAssertion (A): The speculative demand for money increases when interest rates are expected to fall in the future.Reason (R): People prefer to hold money rather than bonds to avoid capital losses when they expect interest rates to rise.a)If both Assertion and Reason are true and Reason is the correct explanation of Assertionb)If both Assertion and Reason are true but Reason is not the correct explanation of Assertionc)If Assertion is true but Reason is falsed)If both Assertion and Reason are falseCorrect answer is option 'A'. Can you explain this answer? in English & in Hindi are available as part of our courses for Humanities/Arts. Download more important topics, notes, lectures and mock test series for Humanities/Arts Exam by signing up for free.
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 asAssertion (A): The speculative demand for money increases when interest rates are expected to fall in the future.Reason (R): People prefer to hold money rather than bonds to avoid capital losses when they expect interest rates to rise.a)If both Assertion and Reason are true and Reason is the correct explanation of Assertionb)If both Assertion and Reason are true but Reason is not the correct explanation of Assertionc)If Assertion is true but Reason is falsed)If both Assertion and Reason are falseCorrect answer is option 'A'. 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 asAssertion (A): The speculative demand for money increases when interest rates are expected to fall in the future.Reason (R): People prefer to hold money rather than bonds to avoid capital losses when they expect interest rates to rise.a)If both Assertion and Reason are true and Reason is the correct explanation of Assertionb)If both Assertion and Reason are true but Reason is not the correct explanation of Assertionc)If Assertion is true but Reason is falsed)If both Assertion and Reason are falseCorrect answer is option 'A'. 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 asAssertion (A): The speculative demand for money increases when interest rates are expected to fall in the future.Reason (R): People prefer to hold money rather than bonds to avoid capital losses when they expect interest rates to rise.a)If both Assertion and Reason are true and Reason is the correct explanation of Assertionb)If both Assertion and Reason are true but Reason is not the correct explanation of Assertionc)If Assertion is true but Reason is falsed)If both Assertion and Reason are falseCorrect answer is option 'A'. 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 asAssertion (A): The speculative demand for money increases when interest rates are expected to fall in the future.Reason (R): People prefer to hold money rather than bonds to avoid capital losses when they expect interest rates to rise.a)If both Assertion and Reason are true and Reason is the correct explanation of Assertionb)If both Assertion and Reason are true but Reason is not the correct explanation of Assertionc)If Assertion is true but Reason is falsed)If both Assertion and Reason are falseCorrect answer is option 'A'. 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 asAssertion (A): The speculative demand for money increases when interest rates are expected to fall in the future.Reason (R): People prefer to hold money rather than bonds to avoid capital losses when they expect interest rates to rise.a)If both Assertion and Reason are true and Reason is the correct explanation of Assertionb)If both Assertion and Reason are true but Reason is not the correct explanation of Assertionc)If Assertion is true but Reason is falsed)If both Assertion and Reason are falseCorrect answer is option 'A'. Can you explain this answer? tests, examples and also practice Humanities/Arts tests.
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