Question

Assertion (A): Currency is created by the RBI and Union Government. 

Reason (R): Bank deposits are created by commercial banks and co-operative banks.

(a) Both ‘A’ and ‘R’ are true and ‘R’ is the correct explanation to ‘A’ 

(b) Both ‘A’ and ‘R’ are true but ‘R’ is not the correct explanation to ‘A’ 

(c) ‘A’ is true but ‘R’ is false 

(d) ‘A’ is false but ‘R’ is true

Answer 1

(a) Both ‘A’ and ‘R’ are true and ‘R’ is the correct explanation to ‘A’