Economics · Banking
Given below are two statements: One is labelled as Assertion (A) and the other is labelled as Reason (R). Assertion (A): Loans and advances comprise the important areas of the investment of their money by Commercial Banks. Reason (R): Commercial Banks increase their funds also by creating credit. In the light of the above, choose the correct answer:
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1(A) is not correct, but (R) is correct
- 2(A) is correct, but (R) is not correct
- 3Both (A) and (R) are correct, but (R) is not the correct explanation of (A)
- 4Both (A) and (R) are correct and (R) is the correct explanation of (A)✓
Correct answer
Both (A) and (R) are correct and (R) is the correct explanation of (A)
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