Assertion: The process by which allocation of funds is done is called financial intermediation. Reasoning: Banks and financial markets are competing intermediaries in the financial system, and give households a choice of where they want to place their savings.

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.

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

The process by which allocation of funds is done is called financial intermediation. Banks and financial markets are competing intermediaries in the financial system, and give households a choice of where they want to place their savings. thus, Both Assertion (A) and reasoning (R) are correct and but R is not the correct explanation of A.