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Social Science — CBSE Class 10 board question

Q1. [1]
Two statements are given below. They are Assertion (A) and Reason (R). Read both the statements and choose the correct option. Assertion (A) : Banks are not ready to lend money to certain borrowers. Reason (R) : Some people do not have collateral.
  1. (A) Both (A) and (R) are true and (R) is the correct explanation of (A).
  2. (B) Both (A) and (R) are true, but (R) is not the correct explanation of (A).
  3. (C) (A) is true, but (R) is false.
  4. (D) (A) is false, but (R) is true.
Previously asked in CBSE board exam
2024 32/4/1 Q20
Generated by claude-sonnet-4-6 · 2026-06-15 06:53 · grounding rag
Model Answer

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

Banks require collateral as a guarantee for loans; those without collateral cannot provide it, so banks are unwilling to lend to such borrowers.

Explanation

The textbook explicitly states that "absence of collateral is one of the major reasons which prevents the poor from getting bank loans." Thus R directly and correctly explains A, making option (A) the right choice. Remember: collateral is the key term linking both statements.

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Previous-year CBSE Grade 10 board exam questions, organised by subject and chapter, each with a model answer — free to read and print.