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Question

Social Science Question on Money and Credit

Two statements are given below. They are Assertion (A) and Reason (R). Read both the statements and choose the correct option.
Assertion (A): No individual in India can legally refuse a payment made in rupees.
Reason (R): In India, the rupee is authorized by the State Governments.

A

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

B

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

C

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

D

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

Answer

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

Explanation

Solution

The Indian rupee is a legal tender authorized by the Reserve Bank of India (RBI) under the central government, not the State Governments. No individual in India can refuse a payment made in rupees because it is the lawful currency of the country.