Assertion (A)': The facility of demand deposits makes it possible to settle' payments without the use of cash.
Reason (R) : Demand deposits are paper orders which make it possible to transfer money from one person's account to another person's account.

Options

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 correct but R is wrong.
D. A is wrong and R is correct.

Answer

D

Explanation

The facility of cheques against demand deposits makes it possible to directly settle payments without the use of cash. Since demand deposits are accepted widely as a means of payment, along with currency, they constitute money in the modern economy.