12th Class Economics Money And Banking Question Bank Assertion-Reason - Money

  • question_answer
    Directions : Read the following statements : Assertion (A) and Reason (R). Choose one of the correct alternative.
    Assertion (A): Paper currency is a limited legal tender.
    Reason (R): Any one can make payments in terms of paper currency up to any limit.

    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: D

    Solution :

    [d] Assertion (A) is false but Reason (R) is true.


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