Read the following statements : Assertion (A) and Reason ...

CBSE Class 12 Business Studies 2026 All Sets Solved Paper

Question : 21 of 21

Marks: +1, -0

Read the following statements : Assertion (A) and Reason (R).
Assertion (A) : The investing public gets a safe and fair deal on the stock market.
Reason (R) : The membership of stock exchange is well regulated and its dealings are well defined according to the existing legal framework.
Choose the correct alternative :

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

Solution:

The Assertion (A) is true because stock exchanges provide a regulated platform for trading.
The Reason (R) explains why it is safe: because the legal framework and exchange rules strictly regulate members and their dealings.
Since (R) provides the underlying cause for (A), it is the correct explanation.

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