Assertion A Currency in circulation is the most liquid form of money Reason R Liquidity is the case ...........

Introductory Macro Economics Money and banking

Assertion (A) Currency in circulation is the most liquid form of money.

Reason (R) Liquidity is the case of convertibility of an asset into cash.

Alternatives

Assertion (A) is true and Reason (R) is a correct reason of Assertion (A)

Assertion (A) is true, but Reason (R) is not a correct reason of Assertion (A)

Assertion (A) is false, but Reason (R) is true

Both are false

Assertion (A) is true, but Reason (R) is not a correct reason of Assertion (A)

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Currency in circulation has the highest liquidity, i.e. ease of convertibility into cash, as it is literally "cash". Should be a