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Read the following… (Class 12 Economics 2026, Q2)

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EconomicsCBSE Class 12 · Board exam 2026, set 58/1/1 · 1 mark · Assertion-reason

CBSE Class 12 Economics 2026: question 2

Set in the CBSE Class 12 board exam of 2026, paper 58/1/1, section A, question 2, for 1 mark. Try it first; the hints and our step-by-step solution are below.

Q2 · 1 mark · Assertion-reasonCompetency-basedMoney and Banking

Read the following statements : Assertion (A) and Reason (R). Choose the correct option from those given below :

Assertion (A) : Money is of perishable nature and is generally accepted by all at any point of time.

Reason (R) : Money serves as a store of value, facilitating individuals to transfer purchasing power from the present to the future.

  1. (A)Both Assertion (A) and Reason (R) are true, and Reason (R) is the correct explanation of Assertion (A).
  2. (B)Both Assertion (A) and Reason (R) are true, but Reason (R) is not the correct explanation of Assertion (A).
  3. (C)Assertion (A) is true, but Reason (R) is false.
  4. (D)Assertion (A) is false, but Reason (R) is true.

Source: official question paper from cbse.gov.in (PDF). See it in the full 2026 board paper, set 58/1/1.

Hints

Open one hint at a time and try again before the next.

Hint 1

Can money be stored for years without losing its physical form?

Hint 2

Store of value is one of the functions of money.

Step-by-step solution

Each step shows the marks it earns, as an examiner would award them. Checked by an independent re-solve from the question paper.

  1. Assertion: False. Money (currency) is durable, not perishable; being durable is what lets it be accepted at any time.

    Reason: True. Money is a store of value: it lets people keep purchasing power today and use it in the future.

  2. A is false and R is true. Option (D).

    1 mark

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

Where the marks are

  • Truth of A and R and the link between them (1 mark)

Revise the chapter

Practise this chapterBoard-style questions from Money and Banking, one at a time, marked against the answer key and marking points.Back to the full paper2026 board paper, set 58/1/1: every question, by section.

The question is transcribed from the official paper; figures are described in words. The solution, hints and chapter tag are ours. Spotted an error? Write tosupport@questionbuddy.in.