Read the Assertion and Reasoning and select the correct option. Assertion (A): Bank rate is also called as credit rate. Reasoning (R): Banks need funds to expand credit facilities to their clients, specially during busy season.
Assertion (A) is false but Reason (R) is true.
Understanding Bank Rate and Credit Expansion
The question asks us to evaluate an assertion and a reason related to the bank rate and the funding needs of banks for credit expansion.
Evaluating Assertion (A): Bank rate is also called as credit rate.
The Bank rate is a monetary policy tool used by the central bank (like the Reserve Bank of India) to control credit flow in the economy. It is the rate at which the central bank provides long-term funds to commercial banks without asking for any collateral. While the Bank rate influences the cost of credit in the economy, it is not commonly or officially known as the "credit rate". Other terms like repo rate, reverse repo rate, and cash reserve ratio are also part of monetary policy, each with a specific function. The term "credit rate" is not a standard economic term for the Bank rate.
Based on this, Assertion (A) is false.
Evaluating Reasoning (R): Banks need funds to expand credit facilities to their clients, specially during busy season.
Banks operate by accepting deposits and providing loans (credit) to individuals, businesses, and other entities. To expand their lending activities, banks require sufficient funds. This is particularly true during periods of high economic activity or specific seasons, often referred to as "busy seasons," when there is increased demand for credit from various sectors like agriculture, industry, and trade. Banks need funds (either from deposits, borrowing from the central bank, or other sources) to meet this higher demand for loans.
Based on this, Reasoning (R) is true.
Conclusion
We have determined that Assertion (A) is false because the Bank rate is not typically called the credit rate. We have also determined that Reason (R) is true because banks do need funds to expand credit facilities, especially during busy seasons when demand for credit is high.
Therefore, Assertion (A) is false, but Reason (R) is true.
Important Questions from Miscellaneous
A stone is thrown horizontally from the top of a 20 m high building with a speed of 12 m/s. It hits the ground at a distance R from the building. Taking g = 10 m/s2 and neglecting air resistance will give :
A sphere of volume V is made of a material with lower density than water. While on Earth, it floats on water with its volume f1V (f1 < 1) submerged. On the other hand, on a spaceship accelerating with acceleration a < g (g is the acceleration due to gravity on Earth) in outer space, its submerged volume in water is f2V. Then:
A railway wagon (open at the top) of mass M1 is moving with speed v1 along a straight track. As a result of rain, after some time it gets partially filled with water so that the mass of the wagon becomes M2 and speed becomes v2. Taking the rain to be falling vertically and the water stationery inside the wagon, the relation between the two speeds v1 and v2 is :
Consider the following statements:
1. Distance between the longitudes becomes zero on North Pole and South Pole.
2. Distance between the longitudes is maximum on the Equator.
3. Number of longitudes is more than number of latitudes.
Which of the statements given above is/are correct?
One block of 2⋅0 kg mass is placed on top of another block of 3⋅0 kg mass. The coefficient of static friction between the two blocks is 0⋅2. The bottom block is pulled with a horizontal force F such that both the blocks move together without slipping. Taking acceleration due to gravity as 10 m/s2, the maximum value of the frictional force is :
