Question

Assertion (A): Central Bank provides loans to the commercial bank in the situation of financial distress.

Reasoning (R): Central Bank can order the government to help the bank facing the financial crisis.

पर्याय

• A is true but R is false.

• A is false but R is true.

• Both A and R are true and R explains A.

• Both A and R are true but R does not explain A.

Answer 1

A is true but R is false.

Explanation:

When commercial banks have a financial crisis, the central bank serves as a lender of last resort, providing loans. However, the central bank cannot direct the government to assist the bank.