Question

Given below are two statements : one is labelled as Assertion (A) and the other is labelled as Reason (R).
Assertion (A) : The price of a stock is determined on the basis of the demand and supply of the stock.
Reason (R) : The value of sensex increases wherever there is a heavy demand for the stocks which form the sensex.
In the light of the above statements, choose the most appropriate answer from the options given below :

• A. Both (A) and (R) are correct and (R) is the correct explanation of (A)
• B. Both (A) and (R) are correct but (R) is not the correct explanation of (A)
• C. (A) is correct but (R) is not correct
• D. (A) is not correct but (R) is correct

Hint:

To check if the Reason is the correct explanation, read the Assertion, add "because", and then read the Reason.
"Stock prices are determined by demand and supply because the Sensex increases when there is demand for its stocks."
This is clearly not a logical explanation, confirming that (R) is not the explanation of (A).

Answer 1

The Correct Option is B