Read the following statements - Assertion (A) and Reason (R)carefully and choose the correct alternative given below:
Assertion (A) :Evolution of money has facilitated contractual payments.
Reason (R ):Money supply in the economy includes both fiat and fiduciary money.

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

The correct answer is option 2:  Both Assertion (A) and Reason (R ) are true and Reason(R) is not the correct explanation of Assertion (A)

Fiduciary money is money that is accepted as a medium of exchange due to the trust that exists between the payer and the payee.

Fiat money is a government-issued currency that is not backed by a physical commodity, such as gold or silver, but rather by the government that issued it.

Assertion A states that the evolution of money has facilitated contractual payments. This is true because money serves as a medium of exchange, a store of value, and a standard for deferred payments, making contractual transactions easier and more reliable.

Reason R states that the money supply in the economy includes both fiat and fiduciary money. This is also true because fiat money refers to currency issued by the government, while fiduciary money includes demand deposits and other financial instruments that people accept based on trust.

However, Reason R does not directly explain Assertion A. The facilitation of contractual payments is due to the general functions of money, not specifically because of the distinction between fiat and fiduciary money.