Practice question

MCQ

Question

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.

Options

Choose one · Correct answer highlighted

Both Assertion (A) and Reason (R) are true and Reason (R) is the correct explanation of Assertion (A) Correct Both Assertion (A) and Reason (R) are true, but Reason (R) is not the correct explanation of Assertion (A) Assertion (A) is true, but Reason (R) is false Assertion (A) is false, but Reason (R) is true

Explanation

Both Assertion (A) and Reason (R) money banking correct; RBI controls money supply, fiat money legal tender.

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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.

Options

Explanation

Comments

Related blogs

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Exploring Mixtures and their Separation Notes - Types of Mixtures, Separation Methods and Solutions

Journey Inside the Atom Notes - Atomic Structure, Bohr Model and Electronic Configuration

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.