Q113
Consider the following statements. Assertion (A): A well-developed money market is the basis for an effective monetary policy. It is in the money market that the Central Bank comes into contact with the financial sectors of the economy as a whole and it is through the liquidity in the market that influences the cost and availability of credit. Reasoning (R): A well-organized money market is an essential condition for the successful operation of the Central Banking policies, and for holding the conditions of liquidity within the bounds of what the monetary authorities consider desirable.
A.
(A) is true but (R) is false
B.
(R) is true but (A) is false
C.
(A) is true and (R) offers correct explanation to (A)
AnswerD.
Both (A) and (R) are false
Answer: Option C
Solution
Answer: Option C
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