| 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 false
D) Assertion [A] is false, but Reason [R] is true
Correct Answer: A
Solution :
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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