Practicing Success

Target Exam

CUET

Subject

Entrepreneurship

Chapter

Resource Mobilisation

Question:

Assertion: Stock exchanges control the activities of brokers and protect the investors from being deceived.
Reasoning: If any broker is found indulging in malpractices as overcharging or giving wrong information, his/her licence may be cancelled by the stock exchange.

Options:

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

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

Assertion (A) is true but Reasoning (R) is not correct.

Assertion (A) is not true but Reasoning (R) is correct.

Correct Answer:

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

Explanation:

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

Stock exchanges control the activities of brokers and protect the investors from being deceived. Now, if any broker is found indulging in malpractices as overcharging or giving wrong information, his/her licence may be cancelled.