Question

Assertion (A): Commercial banks accept various types of deposits to meet the needs of different customers.
Reason (R): Fixed deposits allow consumers to deposit money for a specific period and earn high interest, while current deposits do not help in earning interest but help in frequent transactions for businesses.

• A. Both Assertion (A) and Reason (R) are true and Reason (R) is the correct explanation of the Assertion (A).
• B. Both Assertion (A) and Reason (R) are true, but Reason (R) is not the correct explanation of the Assertion (A).
• C. Assertion (A) is true, but Reason (R) is false.
• D. Assertion (A) is false, but Reason (R) is true.

Hint:

Commercial banks offer a variety of deposit options to cater to different financial needs: fixed deposits for higher interest, savings accounts for short-term savings, and current accounts for frequent transactions.

Answer 1

The Correct Option is A

Commercial banks provide different types of deposits to cater to the varied needs of customers. Fixed deposits offer high interest for a specific period, while current deposits are meant for daily transactions and do not earn interest. Both statements are true and the reason correctly explains the assertion.

Final Answer: (A) Both Assertion (A) and Reason (R) are true and Reason (R) is the correct explanation of the Assertion (A).