Question 2 - Assertion Reasoning - Chapter 3 Class 10 Economics - Money and Credit - Economics

Assertion (A): The facility of demand deposits makes it possible to settle payments without the use of cash.

Reason (R): Demand deposits are paper orders which make it possible to transfer money from one person’s account to another person’s account.

Answer:

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So the correct option is (D) - A is false and R is true .

Explanation

• Assertion (A): The facility of demand deposits makes it possible to settle payments without the use of cash. This is false because a demand deposit does not have the facility of money transfer , cheque has it.
• Reasoning (R): Demand deposits are paper orders which make it possible to transfer money from one person’s account to another person’s account. Thus, the reasoning is true .

Thus,

• Assertion is false
• Reason is true

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

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