Assertion (A) Taking of deposits and granting of loans single out banks.
Reason (R) Banks act as intermediaries when they mobilise savings from surplus units to shortage units in order to finance productive activities.

A. (A) is 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 true, but (R) is false

D. (R) is true, but (A) is false

Answer: Option A