Economics · Monetary Policy
Assertion (A): Excessive reliance on bank credit may reduce monetary policy effectiveness. Reasoning (R): Time lag in credit transmission weakens policy impact.
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1(A) is true but (R) is false.
- 2(A) is false but (R) is true.
- 3Both (A) and (R) are true and (R) explains (A).✓
- 4Both (A) and (R) are false.
Correct answer
Both (A) and (R) are true and (R) explains (A).
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