The question consists of two statements, namely, Assertion (A) and Reason (R). Use them to choose the correct alternative.
Assertion (A): High-powered money is the source of all other forms of money that impact the money supply.
Reason (R): Credit is created by commercial banks.
1
Both A are R are correct, R is the correct explanation of A
2
Both A are R are correct, R is not the correct explanation of A
3
A is correct but R is not correct
4
A is not correct but R is correct