Practicing Success
Practicing Success
CUET Preparation Today
| Read the following statements - Assertion (A) and Reason (R)carefully and choose the correct alternative given below: Assertion (A) : The balance in savings, or current account deposits, held by the public in commercial banks is also considered money. Reason (R ): Cheques drawn on savings, or current account deposits are used to settle transactions. |
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 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 R is the correct explanation of A. |
| Apart from currency notes and coins, the balance in savings, or current account deposits, held by the public in commercial banks is also considered money since cheques drawn on these accounts are used to settle transactions. Such deposits are called demand deposits as they are payable by the bank on demand from the account-holder. Other deposits, e.g. fixed deposits, have a fixed period to maturity and are referred to as time deposits . |
