In the question given below there are 2

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Target Exam

CUET

Subject

Economics

Chapter

Macro Economics: Money and Banking

Question:

In the question given below there are 2 statements marked as Assertion (A) and Reason (R). Choose the correct alternative from the following options.

Assertion (A)- In November 2016, old currency notes of Rs. 500 and Rs. 1000 were no longer legal tender.

Reason (R)- Government took new initiative to curb corruption, black money and circulation of fake currency with the help of demonetisation.

Options:

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

Both (A) and (R) are true but (R) is not the correct explanation of (A).

(A) Is true but (R) is false.

(A) Is false but (R) is true.

Correct Answer:

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

Explanation:

The correct answer is option 1: Both (A) and (R) are true and (R) is the correct explanation.

Assertion (A): In November 2016, old currency notes of Rs. 500 and Rs. 1000 were indeed no longer legal tender. This was part of the Indian government's demonetization policy announced on November 8, 2016.
Reason (R): The demonetization initiative was undertaken by the government to address issues such as corruption, black money, and the circulation of fake currency. This reason correctly explains the motivation behind the action taken in Assertion (A).

Therefore, both the assertion and the reason are accurate, and the reason provides the correct explanation for the assertion.