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: Fact-checking the Assertion.
Money is specifically designed to be durable and long-lasting so that it can facilitate trade over time. Unlike agricultural produce, money does not decay or rot; therefore, describing it as "perishable" is factually incorrect.
Step 2: Fact-checking the Reason.
One of the fundamental functions of money is its ability to act as a "store of value." This means wealth can be held in the form of money and spent at a later date, effectively shifting purchasing power across time. This statement is true.
Step 3: Conclusion.
Because the first statement contains a false claim regarding the physical nature of money while the second statement correctly identifies a functional characteristic, option (D) is the correct choice.
Final Answer: Assertion (A) is false, but Reason (R) is true.