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.

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

Assertion (A): This is correct. The balance in savings or current account deposits held by the public in commercial banks is indeed considered money. This is because these deposits can be withdrawn on demand and used to make payments. They are essentially a store of value that can be accessed and used as a medium of exchange.

Reason (R): The reason provided is correct. Cheques drawn on savings or current account deposits are a common method of making payments. By writing a cheque, a person instructs their bank to transfer funds from their account to the recipient's account. This effectively uses the balance in their deposit account to settle the transaction.

Therefore, both the assertion and the reason are true, and the reason accurately explains why savings and current account deposits are considered money.