Assertion (A): Banks keeps a small proportion of their deposits as cash with themselves.

Reason (R): This is kept to meet the loan requirements of the people.

 

Answer:

So, the correct answer is (C) - A is true but R is false.

Explanation

Let’s check the statements 

  • Assertion (A): Banks keep a small proportion of their deposits as cash with themselves.  So the assertion is true.
  • Reason (R) : This is kept to meet the loan requirements of the people. The reasoning is false because the proportion of deposits is kept to meet the withdrawal demand of their customers .

Thus,

  • Assertion is true
  • Reasoning is false

So, the correct answer is (C) - A is true but R is false.

Ask a doubt
Davneet Singh's photo - Co-founder, Teachoo

Made by

Davneet Singh

Davneet Singh has done his B.Tech from Indian Institute of Technology, Kanpur. He has been teaching from the past 14 years. He provides courses for Maths, Science, Social Science, Physics, Chemistry, Computer Science at Teachoo.