Question 1 - Assertion Reasoning - Chapter 3 Class 10 Economics - Money and Credit - Economics

Assertion (A): Banks keeps a small proportion of their deposits as cash with themselves.

Reason (R): This is kept to meet the loan requirements of the people.

Answer:

So, the correct answer is (C) - A is true but R is false.

Explanation

Let’s check the statements 

• Assertion (A): Banks keep a small proportion of their deposits as cash with themselves.  So the assertion is true.
• Reason (R) : This is kept to meet the loan requirements of the people. The reasoning is false because the proportion of deposits is kept to meet the withdrawal demand of their customers .

Thus,

• Assertion is true
• Reasoning is false

So, the correct answer is (C) - A is true but R is false.