Question

Assertion: Current account is generally preferred by business enterprises.

Reason: Business enterprises find it useful due to its high rate of interest.

Options

• Both Assertion and Reason are true and Reason is the correct explanation for Assertion.

• Both Assertion and Reason are true but Reason is not the correct explanation for Assertion.

• Assertion is true and Reason is false.

• Both Assertion and Reason are false.

Answer 1

Assertion is true and Reason is false.

Explanation:

Business enterprises prefer current accounts because they permit unlimited transactions. However, these accounts usually offer little or no interest, as they are meant for easy access and liquidity rather than earning returns.