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.
