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Question
Assertion (A): Private sector activities are operated through the instrument of market mechanism.
Reason (R): State Bank of India is a private sector enterprise.
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 and 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.
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Solution
Assertion (A) is true but Reason (R) is false.
Explanation:
The private sector comprises enterprises that are owned by private individuals or groups and operate in the market economy to generate profit. Public sector enterprises, like SBI, are government-owned and do not belong to the private sector. Hence, SBI being a public sector bank does not explain the assertion about private sector activities.
