Question

Assertion (A): Money is of perishable nature and is generally accepted by all at any point of time.

Reason (R): Money serves as a store of value, facilitating individuals to transfer purchasing power from the present to the future.

Options

• Both Assertion (A) and Reason (R) are true, and Reason (R) is the correct explanation of Assertion (A).

• Both Assertion (A) and Reason (R) are true, but Reason (R) is not the correct explanation of Assertion (A).

• Assertion (A) is true, but Reason (R) is false.

• Assertion (A) is false, but Reason (R) is true.

Answer 1

Assertion (A) is false, but Reason (R) is true.

Explanation:

• Assertion (A) is incorrect. Money is not perishable; it is durable, has low storage costs and is generally acceptable as a medium of exchange.
• Reason (R) is correct. One of money’s key functions is to serve as a store of value, allowing people to transfer purchasing power from the present to the future (though its effectiveness depends on stable purchasing power).