Question : Assertion (A): Currency money is also termed as Fiat money.
Reason(R): Under law, currency must be accepted for payment for all debts.
Option 1: Both Assertion (A) and Reason(R) are true and Reason (R) is the correct explanation of Assertion (A)
Option 2: Both Assertion (A) and Reason(R) are true, but Reason (R) is not the correct explanation of Assertion (A)
Option 3: Assertion (A) is true, but Reason (R) is false.
Option 4: Assertion (A) Is false, but Reason (R) is true.
Correct Answer: Both Assertion (A) and Reason(R) are true and Reason (R) is the correct explanation of Assertion (A)
Solution : The correct answer is (a) Both Assertion (A) and Reason (R) are true and Reason (R) is the correct explanation of Assertion (A).
Assertion is termed as Fiat money, which is true. Fiat money refers to money that has value because the government declares it to be legal tender, not because it is backed by a physical commodity like gold or silver.
Reason is also true, as legal tender laws require creditors to accept currency as a form of payment.
Therefore, both Assertion (A) and Reason (R) are true, and Reason (R) correctly explains Assertion (A).
Question : Assertion (A): The price-demand curve has a downward slope. Reason (R): Inverse relationship between price and demand is stated by the law of demand, holding all other parameters constant.
Question : Assertion (A): The demand curve shows the inverse relationship between the own price of a good and its quantity demanded. Reason (R): Law of diminishing marginal utility advocates that consumer gets lesser satisfaction for each additional unit consumed
Question : Assertion: The demand curve demonstrates the inverse relationship between a good's own price and the number of units sought. Reason: According to the law of diminishing marginal utility, consuming more units leads to lower consumer satisfaction.
Question : Assertion: Giffen goods violate the law of demand.
Reason: Giffen goods are inferior goods for which the income effect dominates the substitution effect, resulting in an upward-sloping demand curve.
Question : Assertion: The law of supply states that as the price of good increases, the quantity supplied of that good also increases.
Reason: The law of supply is based on the positive relationship between price and quantity supplied, assuming other factors remain constant.
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