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Two statements are given below as Assertion and Reason. Read the statements and choose the most appropriate option. Assertion (A): The terms of credit are same for all the credit arrangements. Reason (R): The term of credit depends upon the nature of the lender and the borrower. (a) Both A and Rare correct and R is the correct explanation of A (b) Both A and Rare correct but R is not the correct explanation of A. (c) A is correct but R is incorrect. (d) A is incorrect but Ris correct. ?
Most Upvoted Answer
Two statements are given below as Assertion and Reason. Read the state...
Assertion and Reason Analysis
The given statements involve an assertion about credit terms and a reasoning related to those terms. Let’s evaluate them.
Assertion (A): The terms of credit are same for all the credit arrangements.
- This statement is incorrect.
- In reality, the terms of credit can vary significantly depending on various factors such as the lender's policies, the borrower's creditworthiness, and the nature of the agreement.
Reason (R): The term of credit depends upon the nature of the lender and the borrower.
- This statement is correct.
- The terms of credit are influenced by the relationship between the lender and the borrower, including factors like trust, risk assessment, and the financial status of both parties.
Conclusion
Given the analysis:
- Assertion (A) is incorrect because it generalizes the terms of credit as being uniform across all arrangements.
- Reason (R) is correct as it accurately describes how credit terms can vary based on the characteristics of the lender and the borrower.
Correct Option
The most appropriate choice is (d) A is incorrect but R is correct.
Summary
- Assertion (A): Incorrect
- Reason (R): Correct
- Correct Option: (d) A is incorrect but R is correct.
This classification of the statements helps in understanding the dynamics of credit arrangements and how they are tailored to individual circumstances.
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Two statements are given below as Assertion and Reason. Read the statements and choose the most appropriate option. Assertion (A): The terms of credit are same for all the credit arrangements. Reason (R): The term of credit depends upon the nature of the lender and the borrower. (a) Both A and Rare correct and R is the correct explanation of A (b) Both A and Rare correct but R is not the correct explanation of A. (c) A is correct but R is incorrect. (d) A is incorrect but Ris correct. ?
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