Question

ASSERTION (A). There are two components of money supply, currency held by the public and net demand deposits held by the commercial banks. REASON (R). Money supply is a stock variable and refers to the stock of money held by the public in spendable form i.e. money supply refers to the stock of money in circulation in an economy.​

Answer 1

Answer:

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Explanation:

ASSERTION (A). There are two components of money supply, currency held by the public and net demand deposits held by the commercial banks. REASON (R). Money supply is a stock variable and refers to the stock of money held by the public in spendable form i.e. money supply refers to the stock of money in circulation in an economy. a) Both ASSERTION (A) and REASON (R ) are true and REASON (R ) is the correct explanation of ASSERTION (A). b) Both ASSERTION (A) and REASON (R ) are true and REASON (R ) is not the correct explanation of ASSERTION (A). c) ASSERTION (A) is true but REASON (R )is false. d) ASSERTION (A) is false but REASON (R )is true.