In the context of the functional classification of money, consider the following statements: Assertion (A): Money serves as the essential basis for the distribution of national income among the various factors of production. Reason (R): In a modern economy, all factor incomes, including wages, rent, interest, and profit, are measured and settled in monetary terms, which enables the allocation of the total social product among contributing factors.

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General Knowledge · General Awareness

Verified Solution4 OptionsUpdated: October 2026👁️1 View

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Both (A) and (R) are true, and (R) is the correct explanation of (A).

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Answer 1

Both (A) and (R) are true, but (R) is not the correct explanation of (A).

Answer 2

Both (A) and (R) are true, and (R) is the correct explanation of (A).

Answer 3

(A) is true, but (R) is false.

Answer 4

(A) is false, but (R) is true.

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