Question : Assertion: Financial sector reforms aimed to strengthen the regulatory framework.

Reason: A robust regulatory framework ensures stability and protects investors' interests.

 

Option 1: Both assertion and reason are true, and the reason is the correct explanation of the assertion.

Option 2: Both assertion and reason are true, but the reason is not the correct explanation of the assertion.

Option 3: Assertion is true, but the reason is false.

Option 4: Assertion is false, but the reason is true.

Correct Answer: Both assertion and reason are true, and the reason is the correct explanation of the assertion.

Solution : The correct answer is (a) Both assertion and reason are true, and the reason is the correct explanation of the assertion.

The assertion that financial sector reforms aimed to strengthen the regulatory framework is true. Financial sector reforms often involve measures to enhance the regulatory framework, such as improving supervision, increasing transparency, and implementing stronger risk management practices. These reforms are intended to create a more robust and resilient financial system.

The reason provided, which states that a robust regulatory framework ensures stability and protects investors' interests, is the correct explanation for the assertion. A strong regulatory framework is essential for maintaining stability in the financial sector, preventing misconduct and fraud, and safeguarding the interests of investors. It helps establish rules and guidelines for financial institutions, promotes fair and transparent practices, and provides oversight to mitigate risks.

Therefore, both the assertion and the reason are true, and the reason correctly explains why financial sector reforms aim to strengthen the regulatory framework.