Assertion A Demand deposits are not legal tenders Reason R They are with the bank so only can b...........

Economics (CUET) Money and banking

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Assertion (A): Demand deposits are not legal tenders.

Reason (R): They are with the bank, so only can be used as a legal tender when cheques are issued for the transfer.

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

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

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

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

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Explanation:

Option (3) is correct.
Explanation: Legal tender money is that form of money that has a legal sanction by the government behind it. Cheque able demand deposits are not legal tenders because a person
can legally refuse to accept payment through cheque able demand deposits.