Assertion Reason Questions for Class 10 Social Science Economics Chapter 3 Money and Credit

[PDF] Download Chapterwise Assertion Reason Questions for Class 10 Social Science Economics Chapter 3 Money and Credit

The following questions consist of two statements — Assertion (A) and Reason (R). Answer these
questions selecting the appropriate option given below:
(a) Both A and R are true and R is the correct explanation of A.
(b) Both A and R are true but R is not the correct explanation of A.
(c) A is true but R is false.
(d) A is false but R is true.

Q.1. Assertion (A): Credit would be useful or not depends on the risk involved in a situation.
Reason (R): The chance of benefitting from credit is highest in agricultural sector.

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Answer: (c) A is true as whether credit would be useful or not, depends on the risks involved in the situation.  is false because in the agricultural sector there are high risks of crop failure which can further lead to high debts. Thus, there are low chances of benefit from credit in agricultural sector.

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Q.2. Assertion (A): Modern currency is used as a medium of exchange, however, it does not have a use of its own.
Reason (R): Modern currency is easy to carry.

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Answer: (b) Modern currency is used as a medium of exchange because it is accepted and authorised as a medium of exchange by a country’s government. Modern currency is easy to carry as it includes paper notes and coins. Hence, both assertion and reason are true but reason is not the correct explanation of assertion.

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Q.3. Assertion (A): Banks charge a higher interest rate on loans than what they offer on deposits.
Reason (R): The difference between what is charged from borrowers and what is paid to depositors is their main source of income.

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Answer: (a) The interest charged on loans is higher than the interest paid on deposits because the difference between the two interest rates is the major source of income for banks. Hence, both assertion and reason are true and reason is the correct explanation of assertion.

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Q.4. Assertion (A): Banks keep only a small proportion of their deposits as cash with themselves.
Reason (R): Banks in India these days hold about 15 per cent of their deposits as cash.

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Answer: (b) Banks only keep a small proportion of their deposits as cash with themselves because they use the major portion of the deposits to extend loans. Banks in India these days hold about 15 pre cent of their deposits as cash. It is kept as a provision to pay the depositors who might come to withdraw money from the bank on any given day. Hence, both assertion and reason are true but reason is not the correct explanation of assertion.

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Q.5. Assertion (A): Collateral is an asset that the borrower owns and use this as a guarantee to a lender until the loan is repaid.
Reason (R): Collateral is given as the lender can sell the collateral to recover the loan amount if the borrower fails to repay the loan.

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Answer: (a) Collateral is an asset that the borrower owns and use as a guarantee to a lender until the loan is repaid. In case of failure of repayment of loan, the lender can sell the collateral to recover the amount. Hence, assertion and reason are true and reason is the correct explanation of assertion.

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What is Assertion Reason Questions for Class 10 Social Science?

Assertion Reason Questions for Class 10 Social Science are designed to test student’s ability to reason and analyze information, and to draw logical conclusions based on the given information. Assertion Reason Questions consist of two statements – an assertion and a reason – and you need to determine whether both statements are true, whether the assertion is true but the reason is false, or whether both statements are false.

Tips for Answering ARQs:

Here are some tips and strategies to help you answer assertion reason questions in the Class 10 Social Science exam:

1. Read the assertion and reason carefully

The first step to answering assertion reason questions is to read the assertion and reason carefully. Make sure you understand what the assertion is saying and what the reason is explaining. Pay attention to keywords and phrases that indicate the relationship between the assertion and reason, such as “because”, “since”, “therefore”, “as a result”, etc.

2. Check for accuracy

Once you have read the assertion and reason, check for accuracy. Is the assertion true or false? Is the reason a valid explanation for the assertion? If you are unsure about the accuracy of the assertion or reason, go back and reread the relevant portion of the text or consult your notes.

3. Identify the relationship between the assertion and reason

Once you have determined the accuracy of the assertion and reason, identify the relationship between the two. Is the reason a cause of the assertion? Is it a consequence? Is there no relationship at all? If you are unsure about the relationship between the assertion and reason, read the text or your notes again.

4. Eliminate options

After identifying the relationship between the assertion and reason, eliminate the options that are clearly incorrect. For example, if the assertion is true but the reason is false, eliminate the option that says both the assertion and reason are true. This will help you narrow down your choices and increase your chances of selecting the correct answer.

5. Use logic and reasoning

Finally, use logic and reasoning to arrive at the correct answer. If the assertion is true and the reason is a valid explanation, select the option that says both the assertion and reason are true. If the assertion is false but the reason is true, select the option that says the assertion is false but the reason is true. If the assertion and reason are both true but do not have a cause-and-effect relationship, select the option that says both the assertion and reason are true but the reason is not a valid explanation for the assertion.

Example of an Assertion Reason Question:

Assertion: The Indian National Congress was founded in 1885. Reason: The Indian National Congress was founded with the objective of securing greater representation for Indians in the government.

Evaluation of the assertion: The assertion is true. The Indian National Congress was indeed founded in 1885.

Evaluation of the reason: The reason is also true. The Indian National Congress was founded with the objective of securing greater representation for Indians in the government.

Evaluation of the relationship between the assertion and the reason: The reason is the correct explanation for the assertion.

Therefore, the answer is (A) Both A and R are true, and R is the correct explanation for A.

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