Question

Assertion (A): Public finance is the method to manage the public funds in the nation's economy.

Reason (R): Public revenue, public expenditure budget preparation and public debt the components of public finance.

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 (А).

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

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

Answer 1

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

Explanation:

Both statements are factually correct and directly related. The assertion correctly describes public finance as the method for administering a nation’s public funds. The reason gives the right explanation by breaking down the specific functional components revenue, expenditure, budgeting, and debt that the government use to methodically carry out that management process.