Read the following statements - Assertion (A) and Reason (R): Assertion: The currency issued by the central bank is called monetary base. Reasoning: It acts as a basis for credit creation. From the given alternatives choose the correct one:

Both Assertion (A) and Reason (R) are true and Reason (R) is the correct explanation of Assertion (A). Both Assertion (A) and Reason (R) are true and 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.

Both Assertion (A) and Reason (R) are true and Reason (R) is the correct explanation of Assertion (A).

The currency issued by the central bank can be held by the public or by the commercial banks, and is called the ‘monetary base’ as it acts as a basis for credit creation.