Question

Read the following statements: Assertion and Reason (R). Choose the correct option from those given below:
% Assertion Assertion : Money is of perishable nature and is generally accepted by all at any point of time.
% Reason (R) Reason (R): Money serves as a store of value, facilitating individuals to transfer purchasing power from the present to the future.

• 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, but 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.

Hint:

Money serves as a store of value, allowing individuals to save and transfer purchasing power to the future. However, it is not perishable.

Answer 1

The Correct Option is D

Step 1: Understanding Assertion (A).
Money is not perishable in nature. While it can lose value over time due to inflation, it does not perish like physical goods. The assertion that money is perishable is incorrect.
Step 2: Understanding Reason (R).
Money does indeed serve as a store of value. This is one of the key functions of money, as it allows individuals to transfer purchasing power from the present to the future by saving money.
Step 3: Evaluation of the options.

• (A) Both Assertion (A) and Reason (R) are true, and Reason (R) is the correct explanation of Assertion (A): Incorrect. While Reason (R) is true, Assertion (A) is false.
• (B) Both Assertion (A) and Reason (R) are true, but Reason (R) is not the correct explanation of Assertion (A): Incorrect. Reason (R) is true, but it does not explain why Assertion (A) is false.
• (C) Assertion (A) is true, but Reason (R) is false: Incorrect. Assertion (A) is false, while Reason (R) is true.
• (D) Assertion (A) is false, but Reason (R) is true: Correct. Assertion (A) is false, but Reason (R) is true and correctly describes one of the functions of money.

Step 4: Conclusion.
Assertion (A) is false, but Reason (R) is true, as money serves as a store of value. Final Answer:} Assertion (A) is false, but Reason (R) is true.